TruCap Fin to focus on cluster lending to tap MSMEs

TruCap Finance plans to focus on cluster lending to benefit SMEs in Tier II and III cities. The company has also partnered with HDFC Bank, DCB, RBI and Shivalik Small Finance Bank for syndicated small business lending.

said Rohan Juneja, Managing Director and CEO of TruCap business line That the company has opened branches in the event of a lending opportunity for a group of local companies. For example, he said that a branch has been opened in North Ahmedabad to serve the thriving tile and ceramic business of MSME which has been very successful.

Within the group, TruCap has focused on retail cash and carriers such as chemists, kirana stores, clothing retailers, shoe retailers, hardware stores, and plumbers.

Going forward, the company plans to focus on Maharashtra, Madhya Pradesh, Gujarat, Rajasthan, Haryana, Delhi, NCR and Goa. It plans to increase its smaller-town affiliates to 125 from 96 this fiscal year.

“We have reduced the risk of default by adopting the phygital model because it will have better control over collection and recovery than borrowers in both secured and unsecured product,” he said.

interest rate

TurCap has also cumulatively paid out Rs 1,250 crore to date for small businesses. The interest rate for unsecured term loans ranges between 16 percent and 25 percent, while the interest rate for a secured loan ranges between 12 percent and 21 percent depending on the borrower’s risk profile and the amount of the loan.

In the last financial year, NBFC disbursed about Rs. 1,012 crore and wants to increase it by 20 per cent in this financial year. In the field of syndicated lending, banks participate in 80 percent of the securities pool, and the National Finance Bank contributes 20 percent.

It is a world of cooperation, not competition, with banks. Being physically present in small towns, we have the experience to identify the right clients and banks are more willing to partner with real companies.