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Godrej Capital to roll out business loans for SMEs

October 13, 2022

Godrej Capital to roll out business loans for SMEs
In a bid to widen its reach, Godrej Capital (GCL) will start offering business loans without any collateral to small and medium enterprises (SMEs) across the country from January 2023. Currently, the company offers housing loans in four cities and loans against property (LAP) in 11 cities and with the launch of small business loans, it plans to reach a balance sheet of ₹10,000 crore by FY’24.

Manish Shah, MD & CEO, of Godrej Capital, told select media persons in Chennai that from January 2023 onwards, it will start offering retail loans pan India to small businesses.

“We will start it in a small way with few variants and we will grow it gradually from April 2023. It would carry interest ranging from 12% to 30% per annum,” he said. It will target small and large traders, manufacturers and service providers.

With the aim of scaling up its ambition in the financial services sector, Godrej Industries launched GCL in April 2022. and said it aims to build a balance sheet of ₹30,000 crore by 2026.

“We are on track to achieve the target, and by that time we would be needing ₹5,000 crore equity investment. We believe that the parent could infuse the equity and on the debt side, we can look for borrowings from banks and other financial institutions. We could look for a listing during the same period,” he said.

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