Capital Float’s Proprietor Loans for Micro-businesses in India


Digital finance company, Capital Float launched Proprietor Loans exclusively for small and micro businesses in India.

Capital Float launches Proprietor Loans exclusively for small and micro businesses in India.

The new product caters to the micro-businesses in the country including kirana and general stores, salons, pharmacies, small restaurants, and other small businesses which typically depend on local moneylenders for their credit requirements as they face difficulties to obtain loans from traditional financial institutions.

Capital Float intends to leverage the vast market of underserved micro-businesses by offering them loans which require less documentation and approval time compared to other loans offered by banks.

Micro-entrepreneurs can avail Proprietor Loans between Rs.25,000 and Rs.1 lakh with a short repayment period of 3-6 months. They can use the loan to expand their business, increase product lines, diversify as well as digitise their offering, said Mr. Sashank Rishyasringa, the co-founder of Capital Float. The businesses can further go for loan renewals, loan enhancements and top-ups, which will be approved based on their business performance, he added.

Capital Float partnered with wholesale businesses such as Amazon Business and Metro Cash & Carry which sell products to a large number of merchants. It will use the business records from the partners to acquire more merchants.

Further, by partnering with digital wallet platforms such as Payworld and PayTM, the company tracks the payment history of the merchants. By using the data from all of its partners, it will decide the eligible loan amount for the merchant and disburse it in less than 10 minutes.

With more than five million kirana stores in India, the digital finance company is currently disbursing 2,000 loans per month in 20 to 25 cities. By March 2018, it targets 5,000 loans per month by expanding its operations to 50 cities. In the next 12-18 months, it aims for a loan book of Rs.500 crore from the segment. The company currently serves in all metros and is planning to take the product further to Ahmedabad, Chandigarh, Surat, Bhopal, Indore and Vizag.

The lending start-up aims to digitise the lending and fintech sector and eventually transform the landscape of financing in India with an innovative approach.

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