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Tata Capital ties up with Capital Float for co-lending to SMEs

Press Trust of India  |  New Delhi 

Tata Capital will co-lend money to under-served small and medium enterprises (SMEs) in a tie-up agreement with lending platform Capital Float.

"Tata Capital has entered into an agreement with Capital Float to provide Working Capital Loans to financially under- served Small and Medium Enterprises (SMEs) in India," Tata Capital said in a statement today.

Under this, SMEs in need of working capital can borrow up to Rs 50 lakh within an year.

The benefit of this loan product, Pay Later, developed by Capital Float is that a borrower can drawdown the money in portions and be eligible for a replenishment of loan amount.

"The uniqueness stems from the fact that the borrower can make multiple drawdowns within the approved limit, which is reinstated from time to time upon repayment by the borrower," it said.

Both the companies expect this partnership to enhance borrower's journey in a seamless online experience.

Small enterprises like distributors and business to business (B2B) players will benefit by making quick and hassle-free payment to suppliers while procuring inventory.

This will facilitate an unhindered growth of their business, Tata Capital said.

Sarosh Amaria, Chief Operating Officer Commercial Finance, Tata Capital said: "SMEs are integral to the fabric of our economy contributing around 38 per cent of our country's GDP."

Customised product 'Pay Later' will speed up loan process and boost company's pan-presence, Tata Capital said.

"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," said Sashank Rishyasringa, Co-Founder, Capital Float.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, October 05 2017. 20:32 IST