FlexiLoans Aims To Disburse Rs 100 Crore To 2 Lakh MSMEs In Nagpur By 2025

Nagpur, May 31 (KNN) FlexiLoans, a non-banking financial company (NBFC) focused on lending to micro, small and medium enterprises (MSMEs), has announced ambitious plans to disburse loans worth Rs 100 crore to over 2 lakh registered users in the Nagpur region of Maharashtra by the year 2025.

The Gurugram-based fintech startup, founded in 2016 by Manish Lunia, Ritesh Jain, and Deepak Jain, has already disbursed over Rs 20 crore in loans to more than 500 MSMEs in the Nagpur area, capitalising on what it describes as "exponential demand" from over 50,000 registered users in the city.

Nationwide, FlexiLoans claims to have facilitated over 65,000 loans amounting to Rs 4,000 crore over the past seven years. The company has received backing from prominent investors such as Sanjay Nayar, Falguni Nayar, and Maj Invest.

Highlighting the importance of the Nagpur market, FlexiLoans co-founder Manish Lunia stated, "Nagpur is one of our priority markets now for lending to local MSMEs. We currently disburse more than Rs 100 crores on a monthly basis and are on track to achieve our vision of being India's trusted financial institution for entrepreneurs and MSMEs."

According to FlexiLoans, the company currently has over Rs 1,500 crore worth of assets under management (AUM) and is targeting annual disbursals exceeding Rs 5,000 crore in the 2024-25 fiscal year.

In April 2023, the company had crossed the milestone of Rs 1,000 crore AUM and over 70,000 loans worth more than Rs 3,400 crore.

The growth of NBFC lending to MSMEs has been a notable trend in recent years, complementing bank credit to small businesses. A report by the Reserve Bank of India (RBI) on the performance of the banking sector during 2022-23 and 2023-24 (until mid-December) revealed that the growth in loans given by NBFCs to MSMEs was over three times that of banks.

While MSME credit growth from banks stood at 12.7 per cent and 12.4 per cent year-on-year (YoY) as of March 2022 and March 2023, respectively, the credit growth by NBFCs to MSMEs was significantly higher at 21.2 per cent and 42.4 per cent for the same periods, according to the RBI report.

(KNN Bureau)