The Paras Product offering
MSME Machinery loan
Mumbai offers plethora of opportunities for lending business and one of them is the Micro and Small & Medium sector. The sector is severely under banked and there is a perennial demand for credit. One of the major players in this sector is Machine tool operators who provide services to various industries based out of Mumbai such as Electrical, Engineering, Food Processing, Pharmaceuticals, and Chemicals & Shipping etc. Typical, the entrepreneur under this sector is Self Employed machine operator with bare minimum resources available to him apart from the odd machinery that is bought from a second hand machine trader.
There are a multitude of Industrial activities that takes place in Mumbai that results in generation of job work for thousands of small time machine shop workers who are generally self employed. The small machine tools operators in Mumbai though have relationships existing with formal banking channel seldom get any credit facility from these channels. There are various reasons for the same. The main reason for the banks to overlook this segment is that the players are too small to attract attention. The gap between the banks and this MSME sector is required to be filled and NBFCs are one of the effective vehicles to achieve the same.
Paras Proposes to fund these small machine tool operators for buying new as well as second hand machines.
Asaan Group Loan (Group Lending Scheme)
Asaan Group loan is a loan program modeled under the Group Lending scheme. “Asaan” means easy, and, as such, is designed to suit the customer ease of application and ease of understanding of the process and the loan details.
Small business persons are encouraged to form groups to enhance credit worthiness. The loans are disbursed to individual members of the group, and each member guarantees the repayment of other borrowers in the group. The Geographical profile of a group under this program is that each individual that comprises the members of the group lives or conducts business within a radius of one kilometre of each other. Group meetings are conducted to test the cohesiveness of the group before the disbursal of loans. Repayment is on weekly basis in cash and there is an update taken from the group if there is any changes in status. Typically the loans have 50 weeks tenor.
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