Mumbai, 27th June 2024: On the occasion of World MSME Day, Arka Fincap Limited is thrilled to announce a 0% processing fee on top-up loans for a limited period, ending on July 27, 2024. This special offer is designed to provide MSMEs with additional financial support, enabling them to expand their businesses without incurring extra costs. Arka Fincap, a non-banking financial company (NBFC) and subsidiary of Kirloskar Oil Engines Limited (KOEL), continues to stand by its commitment to empowering MSMEs.
A Commitment to MSME Growth
Navin Saini, Business Head – Retail SME & MSME, Arka Fincap Limited, expressed the company’s dedication to its customers, stating, “At Arka, we deeply value our customers and are committed to supporting their growth and success. On World MSME Day, we are pleased to offer a 0% processing fee on top-up loans for our existing customers. This special offer is our way of expressing gratitude for their trust and loyalty, helping them access the additional funds they need to expand their businesses without incurring extra costs. We believe in empowering our nation’s MSMEs to achieve greater heights, and this is just one of the many ways we show our dedication to their financial well-being.”
The Vital Role of MSMEs in the Indian Economy
MSMEs play a crucial role in the Indian economy, contributing significantly to employment generation, exports, and overall economic growth. These enterprises are often considered the backbone of the economy, driving innovation, and fostering entrepreneurship. Recognizing their importance, Arka Fincap has always prioritized the financial health and growth of its MSME customers. With a strong focus on customer-centric services and innovative financial products, the company continues to support the entrepreneurial spirit and ambitions of MSMEs across the country.
Innovative Financial Solutions for MSMEs
Recently, Arka Fincap launched their LAP Dropline Overdraft (DLOD) facility. This facility bases interest payments on limit utilization, allowing customers to save significantly on their interest expenses. Such innovative solutions demonstrate Arka Fincap’s commitment to providing flexible and beneficial financial products to its MSME customers.
Launched in 2021, Arka’s MSME and SME business vertical now stands at approximately ₹2,600 crores, contributing to 50% of the overall Assets Under Management (AUM) of ₹5,200 crores as of March 31, 2024. This impressive growth underscores the company’s dedication to fostering MSME growth through tailored financial products and services.
About Arka Fincap Limited
Arka Fincap Limited was established in 2018 as a subsidiary of Kirloskar Oil Engines Limited, leveraging the 130-year legacy of its parent company. Arka operates in four main business segments:
- MSME & personal lending
- Corporate lending
- Real estate and urban infrastructure financing
- Syndication
As a customer-focused, digitally enabled, and analytics-driven NBFC, Arka Fincap provides secured and unsecured financing solutions to MSMEs, SMEs, developers, and corporates. The company’s strong financial standing is reflected in its CRISIL rating of AA(-) for long-term borrowings and A1(+) for short-term borrowings, with a positive outlook. As of March 31, 2024, Arka’s AUM was INR 5,200 crores, with the retail AUM constituting 50% of the total. With a presence across 31 branches in India, Arka is expanding its reach to enable businesses nationwide to advance.
Empowering MSMEs Through Financial Support
The special offer of a 0% processing fee on top-up loans is a testament to Arka Fincap’s ongoing efforts to support MSMEs. By eliminating the processing fee, Arka Fincap ensures that MSMEs can access additional funds without bearing the burden of extra costs. This initiative is particularly timely as MSMEs continue to navigate the challenges posed by the economic landscape.
The Impact of Financial Support on MSMEs
Financial support is crucial for the growth and sustainability of MSMEs. Access to affordable financing allows these enterprises to invest in new technologies, expand their operations, and create more job opportunities. Arka Fincap’s special offer on top-up loans is expected to have a significant positive impact on its MSME customers, enabling them to achieve their business goals more efficiently.
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Celebrating World MSME Day with a Vision for the Future
World MSME Day is an opportunity to recognize and celebrate the contributions of MSMEs to the global economy. Arka Fincap’s special offer is a reflection of the company’s commitment to supporting MSMEs and fostering their growth. As the company continues to innovate and expand its range of financial products, it remains dedicated to empowering MSMEs to reach new heights.
Conclusion
Arka Fincap’s announcement of a 0% processing fee on top-up loans is a significant step towards supporting MSMEs. This initiative, along with the company’s innovative financial solutions and strong customer focus, underscores its commitment to empowering MSMEs and driving economic growth. As MSMEs continue to play a vital role in the Indian economy, Arka Fincap’s support will be instrumental in helping them achieve their full potential.
By offering this special promotion on World MSME Day, Arka Fincap not only celebrates the achievements of MSMEs but also reaffirms its dedication to their success and growth. This initiative is a shining example of how financial institutions can play a crucial role in supporting the backbone of the economy.