Four fintech companies help MSMEs access easy, collateral-free loans

The micro, small and medium-sized enterprise (MSME) sector, though a crucial support to India’s economy, is suffering from a credit crunch. This is of particular concern for businesses seeking unsecured loans, which are unsecured debt issued by banking or financial institutions.

According to Ram Kewalramani, co-founder and managing director of Inasmuch asCredibleInasmuch asthe MSME segment contributes 40% of India’s total exports, but it often finds itself in dire straits when it comes to financing transactions, as only 16% have access to formal credit.

Several fintech companies are solving this problem by creating lending platforms, which offer small entrepreneurs easy, collateral-free loans of up to Rs one crore, helping them scale their business.

Capital Kinara

Bengaluru-based Kinara Capital is a digital platform that helps eliminate paperwork and save time for customers and employees to speed up the credit decision process.

Founded by Hardika Shah, Inasmuch asCapital KinaraInasmuch as says it provides quick and flexible loans of Rs 2-25 lakh without taking collateral from small entrepreneurs. The company says it has disbursed Rs 2,000 crore on over 56,000 unsecured small business loans so far with a presence in over 90 cities across India.

Last year in November, Kinara Capital also launched the myKinara mobile app to provide collateral-free loans to MSMEs within 24 hours. The app comes with a simple three-step process – a first of its kind in the MSME unsecured business loan space.


Inasmuch aslendingkartInasmuch as Finance Limited is a non-depository NBFC that offers working capital loans and loans to SMEs across India.

Launched by Harshvardhan Lunia, co-founder and managing director of the company, the NBFC provides unsecured short-term working capital loans to MSMEs with minimal paperwork within 72 hours. The size of the loan notes ranges from Rs 50,000 to 1 crore for a period of 1 to 36 months.

Lendingkart has offices in Ahmedabad, Bangalore, Mumbai, Delhi NCR and has service reach across India. Since its inception, Lendingkart Finance has assessed nearly half a million applications, disbursing over 1,00,000 loans to over 90,000 MSMEs in over 1,300 cities across India’s 29 states and union territories, which makes it the non-banking financial institution (NBFC) with the largest geographical footprint in the country.


Based on Gurugram Inasmuch asindifiInasmuch as is a lending startup focused on the MSME segment that was launched by Alok Mittal in 2015.

Since its inception, the lending startup has disbursed over 37,000 loans across 12 industries, actively leveraging its vast network of over 20 lenders, including its in-house NFBC Riviera, and over 80 partners where 15% of disbursements of loans are intended for level 3. and 4 cities

The startup offers loans up to Rs 50 lakh without collateral. Last year, Facebook India launched a “Small Business Loans Initiative” program, where it partnered with Indifi to help small and medium-sized enterprises (SMEs) access easy, collateral-free loans.


Mumbai-based fintech SME Inasmuch asFlexiLoansInasmuch as aims to provide fast and affordable credit to SMEs in India with a branchless, agentless and paperless business model.

Launched by Abhishek Kothari, Deepak Jain, Manish Lunia and Ritesh Jain in 2015, Flexiloans processes over Rs 2,000 crore in loans. The platform offers collateral-free loans to small and medium-sized businesses.

In 2021, Flexiloans became one of the first lenders to bring the Google Pay platform online to offer loans to its merchant base.

Edited by Affirunisa Kankudti