New Delhi, Oct 9 (KNN) In a bid to facilitate credit to the Small and Medium Enterprises (SMEs) in the country, Tata Capital has announced collaboration with Capital Float to provide working capital loans to Small & Medium Enterprises (SMEs) in India.

According to the agreement, Tata capital will be lending out loans to the SMEs on the capital float digital platform.

Both companies have come up with a unique feature of “Pay Later” for SMEs in which the SMEs can draw credit with a limit of up to Rs.50 lakh for a period of one year, pre-defined on the basis of the information shared by the company. Developed by Capital Float, this feature provides the privilege to the burrower to make multiple drawdowns within the approved limit, which is reinstated from time to time upon repayment by the borrower.

On this new development, Sarosh Amaria, Chief Operating Officer – Commercial Finance (Tata capital) in a press statement said that SMEs are an important part of economy, contributing around 38% to the GDP and Tata Capital is always keen to encourage small scale businesses.

This agreement between the two companies will help Tata capital is also expected to strengthen its position in the market. (KNN/AG)