Moneyboxx Finance secures ₹50 crore term loan from SBI

Moneyboxx Finance, which provides small-ticket business loans to micro entrepreneurs, on Wednesday secured Rs. 50 crores term loan from SBI for a period of 4 years. 

The company will utilize the funds for onward lending to the micro-entrepreneurs in the agricultural and allied sectors.

“This loan from SBI, along with continuous infusion of debt from existing 21 lenders, will ensure adequate liquidity in alignment with the company’s plans to ramp-up the AUM from over ₹190 Crore as of October 22 to ₹400 crores by March 23,” said a press release.

Deepak Aggarwal, Co-Founder, Moneyboxx said, “We are very excited and thankful to SBI for this vote of confidence in our extremely successful and unique phygital business model, wherein we not only provide growth capital to small and marginal agri-entrepreneurs, but also supplement this with significant beyond-lending initiatives, while maintaining pristine asset quality. The term loan from SBI will help boost our efforts in fostering financial inclusion by addressing the unmet and growing need for credit in the INR 1-10 lacs small business loan segment. With a robust and highly scalable business model in place, backed by an entirely digital process and risk analytics capabilities, we are poised to create a greater positive impact on small businesses across small towns.”

Moneyboxx is driving financial inclusion by catering to the unmet credit needs of micro entrepreneurs in Tier-3 and below regions. With cumulative disbursements of over INR 320 crores, it has transformed lives of over 20k borrowers, of which 45% were women and 38% new-to-credit, the company said in a statement.

The company has engendered sustainable and transformational changes in borrowers‘ lives through various impact initiatives such as free vet consultation service for livestock borrowers and free plantation of fruit-bearing trees for its borrowers who own agricultural land, thereby providing them with an alternate source of income.

Started in 2019, Moneyboxx has over 47 branches spread across Punjab, Haryana, Rajasthan, Madhya Pradesh, and Uttar Pradesh. It focuses on disbursing small ticket unsecured business loans to individual borrowers (livestock, Kirana, traders, micro-manufacturers in Tier-II and III cities) with loans ranging from ₹50,000 to 3,00,000, for 24 months tenure on average.