Godrej Capital Surpasses Rs 500 Crore in MSME Unsecured Loans; Targets Rs 1,000 Crore AUM by FY24

Godrej Capital, the financial arm of the Godrej Group, announced on Thursday that its MSME unsecured loan portfolio has surpassed Rs 500 crore in Assets Under Management (AUM). The company has set a target of achieving Rs 1,000 crore AUM for its unsecured portfolio by the end of the fiscal year 2024. Presently, the MSME loan portfolio of Godrej Capital stands at Rs 3,900 crore, with a goal to reach approximately Rs 6,000 crore by the close of the current fiscal year.

Pankaj Gupta, Chief Business Officer at Godrej Capital, expressed satisfaction with the robust acceptance of their product offerings tailored to the specific needs of MSMEs in India. He stated, "Our focus remains on the growth of the Indian MSME sector and to contribute to its success story and financial aspirations."

Godrej Capital, with a focus on MSMEs, introduced its unsecured business loan product in April of this year to address the cash flow management needs of businesses. The company provides flexible repayment options, an extended tenure of up to 60 months, and incentives for timely repayments. Since commencing operations in November 2020, Godrej Capital, through its subsidiaries, has built a balance sheet of around Rs 8,000 crore across housing and MSME loans.

The company recently launched the digital platform Nirmaan to assist MSMEs with various solutions for business growth, including expanding market reach, streamlining legal and regulatory requirements, improving employee health and welfare, and offering coaching to small enterprises.

Godrej Capital currently provides business loans in 31 cities and aims to double its presence to 60 locations by the end of the next financial year. The channel partner count is also expected to grow from over 2,500 to 10,000 in the next two to three years.

As of September 2023, scheduled commercial banks in India deployed Rs 21.69 lakh crore to MSMEs under priority sector lending, marking a 17.2% increase from Rs 18.50 lakh crore deployed in September 2022, according to the latest data released by the Reserve Bank of India (RBI). This September deployment accounted for 14.3% of India’s Rs 151.3 lakh crore non-food credit during the month, compared to 14.6% of Rs 126 lakh crore non-food credit in September of the previous year.