New Delhi, Nov 23 (KNN) Eyeing at extending credit, the Fino Finance Private Ltd (Fino Finance), a subsidiary of Fino Paytech has started offering loans to to the Micro, Small and Medium Enterprises (MSMEs) to diversify its portfolio of loans.

The subsidiary has launched its new product to serve the MSME sector in Delhi-National Capital Region (NCR) and plans are underway to launch it in Bihar, Maharashtra and Uttar Pradesh. The company is targeting those MSMEs which are unable to avail loans from any bank.

Fino Finance has been providing Joint Liability Group (JLG) based micro-finance in rural areas of Madhya Pradesh, Uttar Pradesh, Bihar, and Maharashtra since seven years and with this new product the company is targeting small business owners such as those running kirana, garment, hardware, local dairy and beauty parlours outlets among others.

Under the new category, the loans will be a mix of secured and unsecured products with loan size varying from Rs 1 lakh -Rs 15 lakh with interest rate ranging from 22 percent to 24 percent .The company is expecting to extend loans worth 1,000 crore to MSME in next four-five years and has been planning  to raise equity of Rs 200 crore from its parent Fino Paytech in four instalments of Rs 50 crore each year. (KNN/AG)