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Microfinance Business Investment Opportunity in Chennai, India

Micro finance company providing short term loans to small business owners, seeking funds for operations.
This Business is on a Premium Plan
Established 1-5 year(s)
Employees 10 - 50
Legal Entity Sole Proprietorship/Sole Trader
Reported Sales Nil
Run Rate Sales Nil
EBITDA Margin Nil
Industries Microfinance
Locations  Chennai
Local Time 8:48 PM Asia / Kolkata
Listed By Management Member
Status Active
Overall Rating
Seeking Investment
USD 400 thousand for 25.0% stake (Native Currency: INR 30,000,000)
Reason: To disburse loans and start operations. Minimum investment would be Rs. 30 lakh and multiples of Rs.... View More
Includes physical assets worth USD 130 thousand
Interested to connect with advisors
Name, Phone, Email
Available after connect
Business Name
Not disclosed
User Verification
Documents
Business Overview

- A micro-finance company based in Chennai.

- This is a new venture started by a group of companies involved in mobile app development, construction and other industries.

- Regulatory approvals are in place.

- We will be providing short term loans to small business owners, shopkeepers, auto and taxi drivers.

- Business is still in the pre-revenue phase and will begin operations within the next 2 months.

- We will be creating groups of 10 people that will have 1 group leader. Each member of the group is eligible for a loan between Rs. 15-30k and a repayment period of 12 - 24 months.

- We have already setup 150 groups, and are ready to disburse the loans once funds are received.

- Interest on loan would be between 20-23% p. a plus processing fee of Rs. 1,000 per loan disbursement.

- The repayment of the loan taken will be done through per day installments. For example - repaying back Rs. 1,500 per day until x amount + interest is paid back.

- The team leader ensures each individual of the team pays the loan back. If someone defaults then the rest of the team members must make up for that individual repayment for that particular day.

- Field verification for each applicant would be done by our team before loan is approved by our credit managers.

- Promoter is from finance background with more than 15 years of experience in managing investment portfolio, sales & marketing and developing HNI assets.

- Locations that we have planned to start in the initial stage are - Salem, Coimbatore, Dharmapuri, Krishnagiri, Karaikudi, Ramanathapuram - All in Tamil Nadu.

- Physical assets include the interior setup and equipment of the offices.

Products & Services Overview

Small business loans for joint liability groups with a minimum of 10 members in a group, loan amount between 15-30k with interest of 20-23 % p. a.

Facilities Overview

We have our registered office of 1,000 Sq ft area, in the heart of Chennai (Mount Road), which has a customer lounge, workstations & manager cabins. More convenient for customers to walk in.

We have similar office set up at all the locations where we are planning to start this business operation (Salem, Coimbatore, Dharmapuri, Krishnagiri, Karaikudi & Ramanathapuram)

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Disclaimer: SMERGERS is a regulated marketplace for connecting business sell sides with investors, buyers, lenders and advisors. Neither SMERGERS represents nor guarantees that the information mentioned above is complete or correct.
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