U GRO Capital expanded its focus in Karnataka on micro loans to small enterprises. In an ambitious strategy aiming at tripling its micro loan customer base by the end of FY24, the company intends to bring out a comprehensive array of solutions targeted to the state’s small enterprises’ distinct needs.
Micro loans from U GRO Capital normally range from 1 lakh to 10 lakhs for unsecured loans and up to 25 lakhs for secured loans. These loans are designed specifically for small firms with an average annual revenue of more than 50 lakhs.
The MSME sector remains an important cog in India’s economy, accounting for around 30% of the country’s GDP, 50% of its exports, and employing over 11 crore people. Karnataka, with its thriving industries such as food processing, electronics, readymade garment manufacturing, automobile manufacturing, and chemical plants, has about 8.75 lakh Micro, Small-Scale companies that employ over 60 lakh people.
Despite their importance, micro-enterprises frequently face difficulties in obtaining finance due to tight regulations and traditional credit assessment processes. U GRO Capital is paving the road for more inclusive financial solutions with its patented underwriting approach (GRO Score 3.0) and concentration on cash flow-based financing. By solving these issues, the company intends to play a critical role in promoting financial inclusion in the region.
U GRO Capital aspires to give loans to approximately 25,000 micro companies across India and approximately 3,000 small businesses in Karnataka by FY24 through its three primary branches in Bengaluru, Mysore, and Hubli, as well as 15 micro branches located around the state.
“We are excited to expand our focus on the Karnataka market, a region that presents a wealth of opportunities for U GRO Capital. Our commitment to providing comprehensive, tailored financial solutions directly supports the state’s vibrant and dynamic micro and small business sectors. Our unique underwriting model allows us to identify and serve creditworthy businesses that may be overlooked by traditional lending models, thereby fostering economic growth and inclusivity,” said J. Sathiayan, Chief Business Officer, U GRO Capital.
The strategy of U GRO Capital is to accelerate growth and harness the potential of micro-enterprises in Karnataka, thus contributing to the larger national goal of improving the MSME sector.
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