Tata Capital has entered into an agreement with Capital Float to provide Working Capital Loans to financially under-served Small & Medium Enterprises (SMEs) in India.

Tata Capital will be co-lending on Capital Float’s digital lending platform and through this relationship, both the companies have collaborated to offer a unique “Pay Later” product to SMEs. Developed in-house by Capital Float, this product provides the borrower with a credit limit of up to Rs. 50 lakhs for a period of one year, pre-defined on the basis of the information shared by the borrower.

The uniqueness stems from the fact that the borrower can make multiple drawdowns within the approved limit, which is reinstated from time to time upon repayment by the borrower.

Sarosh Amaria, COO, Commercial Finance at Tata Capital, said: “SMEs are integral to the fabric of our economy contributing around 38 percent of our country’s national GDP. Tata Capital is deeply invested in providing access to credit to small merchants and entrepreneurs through our supply chain finance business, in which we are one of the market leaders”.

“Our alliance with Capital Float is another step towards strengthening our market position. Providing customized products like ‘Pay Later’ will not only help speed up the loan process and pnts.iness ance business is ly Chain Finance business is . rovide a superior experience to our customers, but it will also help boost our pan-India presence.”

Source: BW CIO World