- MSMEs in Gujarat can now avail business loans of up to Rs 10 lakhs through a completely paperless digital journey
- This new B2B digital platform offers solutions for MSMEs, including financing, protection, investments, advisory and value-added services for managing and growing their businesses
- Apart from MSMEs, the financial products and services are also available for their entire ecosystem, including promoters, owners, and employees
- Loans up to Rs 2 lakhs are provided without collateral or documentation
- For loans above Rs 2 lakhs, MSMEs are required to submit financial statements, ITR, and GST returns
NE BUSINESS BUREAU
AHMEDABAD, AUG 8
To cash in on the Rs 23 lakh crore credit market of the MSMEs with a CAGR of 15 percent, Aditya Birla Finance Ltd. (ABFL), the lending subsidiary of Aditya Birla Capital, on Wednesday launched Udyog Plus, an innovative one-stop business platform designed for MSME customers. Within a short span of its launch, this platform has received over 50,000 registrations, a top official of the company said here on Tuesday.
This new B2B digital platform offers a wide range of financial solutions, including financing, protection, investments, advisory and value-added services for Gujarat’s growing MSME sector. Through Udyog Plus, ABFL aims to facilitate the growth and development of MSMEs in Gujarat by empowering them with crucial financial support, wholly seamless and paperless, thereby promoting financial inclusion and digitalization in the lending landscape.
Udyog Plus is an open marketplace that can be accessed through the financing section of the Aditya Birla Capital website by both existing and new customers of ABFL. MSMEs in Gujarat can now avail business loans of up to Rs 10 lakhs through a completely paperless digital journey of Udyog Plus. In addition to unsecured business loans, the entire ecosystem of MSMEs, including promoters, owners and employees, can enjoy various other services offered by Udyog Plus, such as customised secured lending, insurance, investment solutions, etc.
The platform is integrated with government e-commerce websites via Open Credit Enablement Network (OCEN) and private e-commerce websites to provide credit facilities to sellers on these platforms. Aditya Birla Finance has also partnered with leading solution providers to offer a host of value-added services to the MSME customers, such as free access to business networking platforms, digital commerce, including corporate travel solutions, zero balance bank account, accounting, payroll, and tax filing tools and specialized knowledge content hub.
ABFL already has a strong presence in the MSME segment with around 50% of its total loan book comprising business loans. As an established player in the market, ABFL continues to grow strongly, achieving a 37% year-on-year growth in this segment. Through the launch of Udyog Plus, ABFL aims to simplify the credit landscape by digitizing the Business loan journey for the MSMEs, leading to instant loan disbursals.
Rakesh Singh, MD & CEO, Aditya Birla Finance Ltd., added, “We are excited to present Udyog Plus for our MSME customers in Gujarat, which will empower them to achieve new horizons of success. Gujarat is now home to over 33 Lakh MSMEs, providing employment to 60 Lakh people. Through this platform, we aim to further strengthen ABFL’s foothold in the MSME segment and provide them with a wide range of solutions throughout their business life cycle and encourage the entrepreneurial spirit of Gujarat. Nearly 10 percent of our loan book is from Gujarat.”
Speaking with navjeevanexpress.com, Rakesh Singh said, “We offer online loans up to Rs 10 lakhs to MSMEs through various product offerings such as supply chain finance and transaction-based loans. Loans up to Rs 2 lakhs are provided without collateral or documentation. For loans above Rs 2 lakhs, MSMEs are required to submit financial statements, ITR, and GST returns. All those who seek offline loans above Rs 10 lakh will have to approach our nearest branch.”
Singh said that the group has ramped up its plans to lend to the MSME sector, which contributes to 30 percent of India’s GDP.
Singh added that while the group was always focused on small businesses, the availability of information has made it possible to virtually draw up a balance sheet of small businesses based on GST, Income Tax, and bank statements, which lenders can now access in a straight-through manner.
Gujarat has witnessed a remarkable increase of 60% in MSMEs in the last five years. Moreover, Gujarat leads the registered MSMEs count with more than 13.21 lakh, making it the fourth-largest state in terms of registered MSMEs. ABFL through Udyog Plus aims to better serve the MSME customers in Gujarat and create a winning experience while further strengthening its value proposition in the market.
