Saturday, February 04, 2023
Outlook.com
Outlook India
Outlook Business
+

State Bank of India Lends Rs 200 Million To Red Fort Capital To Expand Its Portfolio

Red Fort Capital aims to use the funds for onward lending to the country’s MSMEs over a Rs 40 trillion credit opportunity

State Bank of India Lends Rs 200 Million To Red Fort Capital To Expand Its Portfolio
POSTED ON January 19, 2023 3:32 PM

Red Fort Capital Finance an investment grade non-bank finance company (NBFC) announced that the State Bank of India (SBI) has sanctioned it a term loan of Rs 200 million. The company aims to use the funds for onward lending to the country’s micro, small and medium-sized enterprises (MSMEs) over a Rs 40 trillion credit opportunity.

Red Fort Capital Finance has reportedly been helping micro, small and medium enterprises by processing secured business loans for working capital, equipment and machinery purchase. The industry focus of the loans is manufacturing, logistics, fast-moving consumer goods (FMCG), information technology (IT), textiles, engineering, procurement, construction (EPC), education and industrial parks.

“MSME lending plays a vital role in the Indian economy. Timely business credit to capitalise on time-sensitive opportunities is essential to them, which explains the huge demand for our Quick Business Loans product. This term loan by SBI underscores that India has strong business fundamentals and poor business credit penetration. Red Fort estimates that the credit penetration will 3x in the next decade.” - said Parry Singh, chief executive officer (CEO) of Red Fort Capital Finance. 

The loan from SBI will ensure adequate liquidity in alignment with the company’s plans to further expand its asset under management (AUM) to Rs 100 crores by the end of the financial year 2022-23 (FY 23). The NBFC seeks deals that offer a strong collateral cover and growing business cash flow and has a healthy well-diversified book with zero non-performing assets (NPA), said Red Fort Capital Finance.

Founded in 2005 by Parry Singh, Red Fort Capital is a Reserve Bank of India registered investment grade non-bank finance company which claims to specialise in providing Rs 10 million to 100 million business loans to micro, small and medium enterprises (MSME) typically within seven days.

  • Related Articles

    Swiggy laid off 1,100 employees in May 2020, and fired another 350 July last year

    Swiggy To Layoff 10% Of Its 6000-Strong Workforce: Report

    The company will use the funds to strengthen its coaching academy, expand the core team, and scale up the technology platform to enhance customer experience

    Breathe Well-Being Raises Rs 50 Crore From 3One4 Capital, Accel and General Catalyst

    The company also aims to raise more funds with a green shoe option of Rs 500 crores

    Sundaram Alternates Announces 1st Close Of Series I Fund At Rs 205 Crore