State Bank of India Lends Rs 200 Million To Red Fort Capital To Expand Its Portfolio

Red Fort Capital Finance an investment grade non-bank finance company (NBFC) announced that the State Bank of India (SBI) has sanctioned it a term loan of Rs 200 million. The company aims to use the funds for onward lending to the country’s micro, small and medium-sized enterprises (MSMEs) over a Rs 40 trillion credit opportunity.

Red Fort Capital Finance has reportedly been helping micro, small and medium enterprises by processing secured business loans for working capital, equipment and machinery purchase. The industry focus of the loans is manufacturing, logistics, fast-moving consumer goods (FMCG), information technology (IT), textiles, engineering, procurement, construction (EPC), education and industrial parks.

“MSME lending plays a vital role in the Indian economy. Timely business credit to capitalise on time-sensitive opportunities is essential to them, which explains the huge demand for our Quick Business Loans product. This term loan by SBI underscores that India has strong business fundamentals and poor business credit penetration. Red Fort estimates that the credit penetration will 3x in the next decade.” - said Parry Singh, chief executive officer (CEO) of Red Fort Capital Finance. 

The loan from SBI will ensure adequate liquidity in alignment with the company’s plans to further expand its asset under management (AUM) to Rs 100 crores by the end of the financial year 2022-23 (FY 23). The NBFC seeks deals that offer a strong collateral cover and growing business cash flow and has a healthy well-diversified book with zero non-performing assets (NPA), said Red Fort Capital Finance.

Founded in 2005 by Parry Singh, Red Fort Capital is a Reserve Bank of India registered investment grade non-bank finance company which claims to specialise in providing Rs 10 million to 100 million business loans to micro, small and medium enterprises (MSME) typically within seven days.