Tata Capital, Capital Float partner to fund SMEs through Pay Later credit scheme

This product provides the borrower with a credit limit of up to Rs 50 lakh for a period of 1 year, pre-defined on the basis of the information shared by the borrower.

Tata Capital has entered into an agreement with Capital Float to provide working capital loans to the small and medium enterprises. Photo: Pixabay

Key highlights:

Tata Capital has entered into an agreement with Capital Float to provide working capital loans to SMEs

Tata Capital will be co-lending on Capital Float’s digital lending platform

The borrower can make multiple draw-downs within the approved limit

Tata Capital has entered into an agreement with Capital Float to provide working capital loans to the small and medium enterprises (SMEs) in India.

Tata Capital will be co-lending on Capital Float’s digital lending platform and through this relationship, both the companies have collaborated to offer a “Pay Later” product to SMEs.

Developed in-house by Capital Float, this product provides the borrower with a credit limit of up to Rs 50 lakh for a period of 1 year, pre-defined on the basis of the information shared by the borrower.

The borrower can make multiple draw-downs within the approved limit, which is reinstated from time to time upon repayment by the borrower.

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Sarosh Amaria, COO – Commercial Finance at Tata Capital said, “SMEs are integral to the fabric of our economy contributing around 38% of our country’s National GDP. Tata Capital is deeply invested in providing access to credit to small merchants and entrepreneurs through our Supply Chain Finance Business, in which we are one of the market leaders. Our alliance with Capital Float is another step towards strengthening our market position. Providing customised products like ‘Pay Later’ will not only help speed up the loan process and provide a superior experience to our customers, but it will also help boost our pan-India presence.”

Sashank Rishyasringa, Co-Founder, Capital Float, said, “Tata Capital is a great fit for us, both in terms of vision and focus on delivering great digital experiences to borrowers. Tata Capital’s extensive expertise in Supply Chain Finance along with our proficiency in developing products customized for SME segments makes this partnership particularly potent from a scalability perspective. We believe new age Fintech companies and established financial institutions need not compete, but can collaborate to widen the financing options available for SMEs. By co-lending with Tata Capital, we can leverage their balance sheet, while they can diversify their portfolio by lending to newer sets of SMEs.”

Additionally, small enterprises like Distributors and B2B buyers stand to benefit by being able to make quick, hassle-free payments to their suppliers or partners while procuring inventory, thereby facilitating the unhindered growth of their business.

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