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    U GRO Capital launches an unsecured SME Business Loan product for women entrepreneurs

    Published on March 9, 2020

    Mumbai: On the occasion of International Women’s Day, U GRO Capital, a BSE listed, technology-enabled small business lending platform, launched a one-of-its-kind unsecured SME lending product, Narayani exclusively for women entrepreneurs. Narayani offers a 0.50% lesser RAAC (Risk Assets Acceptance Criteria) rate compared to the rates offered by other SME lending products available for women entrepreneurs. Other added advantages include no requirement for a collateral guarantee, zero processing fee and no pre-closure charges if the loan is serviced for more than 18 months.

    Although women entrepreneurship has witnessed a healthy growth in recent times, only 14% of entrepreneurs are women in India whereas 48.20% of the population is female. So, empowering half of the country’s population is a key driver to economic growth. GDP is also expected to improve by 6.8% if the gender gap in entrepreneurial space is addressed when it comes to SME financing.

    “We are proud to roll out Narayani which aims to offer financial support to those women entrepreneurs who would have otherwise had financial constraints to scale-up their entrepreneurial dreams. We recognize and value the role of women entrepreneurs in generation of employment opportunities as well as economic growth. Hence, we have designed our Women’s Only SME Business Loan product which addresses the collateral and guarantor-related issues that women entrepreneurs usually face while approaching investors or lenders for funding. Narayani is our effort to open up the capital access spectrum for women entrepreneurs in India by bringing in gender inclusiveness in SME financing,” said Abhijit Ghosh, Whole Time Director and CEO, U GRO Capital.

    Targeting women between 23 and 65 years, Narayani offers loans in the range of INR10 – INR 50 lakh with a tenure ranging between 1 – 4 years. Unlike other secured SME lending products for women entrepreneurs, this unsecured SME lending programme offers lower initial barriers to all-women SME enterprises and women-led entrepreneurial ventures that don’t have the guarantors’ backing.

    U GRO Capital is leveraging its proprietary GRO+ platform to reach out to women entrepreneurs across India from 8 SME sectors and 38 SME sub-sectors which the company presently targets such as healthcare, education, chemicals, hospitality, auto component, restaurant, pathology lab, etc. Under Narayani, the company is in the process of disbursing loans with an average ticket size of INR 20 lakh.

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