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Tag: Ugro Capital

business

UGRO Capital – Report – Analysis of Budget Impact on MSME’s

Aug 14, 2024 by Mansi 0 Comments #budget impact, #MSME, #Ugro Capital

MSMEs at the Centerstage of Budget 2024: The government has recognized the importance of MSMEs in addressing unemployment and rural distress. The budget for 2024-25 has given special attention to MSMEs, particularly labor-intensive manufacturing, through financing, regulatory changes, and technology support.

Improved Access to Credit: A new credit guarantee scheme has been introduced to facilitate term loans for MSMEs to purchase machinery and equipment without requiring collateral or third-party guarantees. This scheme supports MSMEs, especially those in the manufacturing sector, to access credit more easily.

Continued Bank Credit During Stress Periods: A new mechanism has been proposed to ensure MSMEs continue to receive bank credit during stress periods, even if they are in the special mention account (SMA) stage.

Enhanced Mudra Loan Limits: The limit for Mudra loans has been increased from ₹10 lakh to ₹20 lakh for entrepreneurs who have successfully repaid previous loans under the ‘Tarun’ category.

Improved Credit Assessment Models: Public sector banks are set to develop new credit assessment models based on the digital footprints of MSMEs, rather than relying solely on asset or turnover criteria.

Expansion of SIDBI Branches: The Small Industries Development Bank of India (SIDBI) will open 24 new branches this year to serve major MSME clusters.

Reduced Compliance Burden: The turnover threshold for mandatory onboarding on the Trade Receivables Discounting System (TReDS) platform has been reduced from ₹500 crore to ₹250 crore.

Energy Audit and Sustainability Initiatives: The budget has allocated financial support for conducting energy audits in 60 MSME clusters. This initiative aims to help clusters shift to cleaner energy sources.

Support for Food Processing and Export Sectors: Provisions have been made for setting up 50 multi-product food irradiation units and 100 quality testing labs with NABL accreditation, as well as the creation of e-commerce export hubs in public-private-partnership (PPP) mode.

These strategic measures are aimed at fostering growth and enhancing the competitiveness of MSMEs in India. The contribution of MSMEs to all-India manufacturing output in FY 22 was 35.4% and the share of MSME-made products in exports in FY 24 was 45.7%, this is only expected to grow. By 2028, India’s MSME sector is projected to contribute US$ 1 trillion to the nation’s overall exports, making up about 35% of the GDP.

business

Ugro Capital and Sidbi Announce Strategic Co-lending Partnership to Empower Msmes

Jul 30, 2024 by Mansi 0 Comments #Empower Msmes, #Mr. Shachindra Nath, #Shri Prakash Kumar, #SIDBI, #Ugro Capital

Mumbai, July 30, 2024: UGRO Capital, a DataTech NBFC and India’s largest Co-lender in the MSME segment, today announced its strategic co-lending partnership with the Small Industries Development Bank of India (SIDBI). The partnership is established under the Reserve Bank of India’s (RBI) co-lending framework, designed to leverage the strengths of banks and NBFCs to boost priority sector lending.

The co-lending agreement aims to provide faster and more affordable credit to MSMEs, combining UGRO Capital’s innovative data & technology and extensive on-ground presence with SIDBI’s robust financial resources and strategic vision. This collaboration will facilitate inclusive growth and socio-economic development across the country by enabling MSMEs to access the credit they need to thrive.

Shri Prakash Kumar, DMD, SIDBI commented on the partnership, saying, “SIDBI is committed to fostering the growth of the MSME sector, which is the backbone of India’s economy. NBFCs play a crucial role in our growth strategy due to their ability to reach the bottom-of-the-pyramid businesses, especially in credit-deficient geographies. Their adoption of innovative and agile credit delivery models and deep understanding of the local ecosystem are invaluable. The co-lending framework offers a significant opportunity to channel affordable and timely credit to the smallest MSMEs in partnership with NBFCs. Our collaboration with UGRO Capital aligns perfectly with our mission to extend our reach and impact through strategic partnerships. We are pleased to commence our co-lending arrangement with UGRO Capital, which will help provide affordable business loans to MSMEs.”

Mr. Shachindra Nath, Founder and Managing Director of UGRO Capital, said, “We are thrilled to join hands with SIDBI in this strategic co-lending partnership. Our combined efforts will not only enhance the reach of credit to MSMEs but also ensure that it is provided swiftly and at a more affordable cost. This collaboration is a testament to our commitment to driving financial inclusion and supporting the growth of MSMEs across the nation.”

UGRO Capital‘s unique data-driven co-lending approach has already extended bespoke finance solutions to over 78,000 MSMEs in India. With this partnership, UGRO Capital will further expand its impact by enhancing its business footprint and increasing its income through collaborative efforts with SIDBI. The partnership underscores the commitment of both organizations to fulfilling priority sector lending obligations and supporting the MSME sector’s growth.