Chennai, Dec 13 (KNN) Small businesses and shopkeepers impacted by floods and torrential rains triggered by Cyclone Michaung in Chennai and its neighbouring districts last week have reached out to the Non-Banking Financial Company (NBFCs) for working capital. 

While traders are looking at a quick recovery, demand for credit from MSME manufacturing units that were hit hard by floods will surge in the coming weeks, reported TOI. 

Veritas Finance, a MSME focused NBFC is anticipating the number of applications to nearly double this month in the city, Chengalpet, Kancheepuram and Tiruvallur districts. 

“We receive more than 500-600 loan applications in these districts every month and it could go up to 1,000 by December end. On an average, Rs 10-Rs 12 crore loans including unsecured loans are disbursed monthly in the four districts and this demand could go up to Rs 20 crore by the end of this month,” D Arulmany, MD & CEO, Veritas said. The maximum loan sought under the unsecured loan segment is Rs 3 lakh, he added.

Leading NBFC Shriram Finance has witnessed a spike in loan applications. It is primarily from small Kirana shops, small eateries and hotels, textile shops, provision stores and tailoring units seeking loans for stock replenishment, purchasing new stock, repair works and setting up new shop infrastructure, reported TOI.

P Sridharan, joint managing director, Shriram Finance said, numerous small businesses and shop owners affected by cyclone Michuang have applied for loans to resume operations. 

“We have received applications for loans from Rs 20,000 to Rs 5 lakh across Chennai, Chengalpet, Kancheepuram and Tiruvallur. A lot of our existing credit customers in the MSME segment have suffered very badly. Shops and small businesses have suffered both infrastructure and stock loss due to the cyclone,” he said. Several businesses have suffered revenue losses due to closure and delay in resuming business, he added.

(KNN Bureau)