The NBFC sector in India is rapidly advancing as a result of ongoing regulatory reforms, the pivotal role that these firms are playing for the otherwise underserved MSME sector, the rising demand for credit among the Indian middle class, evolving spending habits, and technological shifts that are enhancing operational efficiencies. As the industry continues to develop, it will be influenced (for the better), to a great extent, by India’s digital transformation.

However, the industry also faces numerous challenges like liquidity and funding restrictions arising out of the dependency on external sources, the complexity of the regulatory framework with multiple regulators overseeing various aspects of the industry. This situation poses its own challenges for the NBFCs.

Offering Diverse Financial Products

Incorporated in 2016, Srinidhi Credit (SCPL) has been operational as an RBI licensed NBFC since 2017, offering customers a wide array of fin-ancial products including working capital credit, loan against property (LAP), short-term credit, term loans, and retail loans. However, the company’s core specialty lies in assessing the capital structure of the customer enterprises alongside evaluating the specific needs of each to determine short and long-term solutions. The solutions that the team at SCPL designs are aimed at fulfilling its core values, vision and mission.

“At SCPL we take pride in having created an organization based on our values of trust, empathy, sustainable relationships, and

prudence. We have fostered a culture of learning in a family-like environment. Over 40 percent of our members are women. Our vision is to grow into a reliable entity that prides itself on customer service, transparency, and efficiency, and our mission is to serve the underserved and unserved MSME sector in India, fostering growth opportunities”, shares Padmanabh Maydeo, Director of SCPL.

In pursuance of this objective, the company adopts a methodical approach that encompasses steps to understand every individual client business in depth, including details like business category, purpose of the business, its operational model, and more, to gain a wide infor-mation base needed for drafting tailored solutions for each client, and under writing a winwin proposal for the business, backed by quality assets. This approach has paid off by allowing the firm to ensure near-zero NPAs while also servicing debts in a timely fashion.

“At SCPL, we seek to develop a deeper understanding of the promoters thereby helping us underwrite loan products suiting their needs. Asses-sing the entrepreneur’s execution capabilities and leveraging on the understanding of the business– SCPL’s multi-faceted underwriting criteria helps in solving the right financial problem for the customer partner. Our technical knowhow, which is leveraged in combination with relationships developed over time, is enabling us to create financial solutions that are a right fit for the business and its promoters”, further shares Neha Mohta, Director of SCPL.

Neha Mohta, Director

Future Roadmap

Since its inception, SCPL has grown significantly in terms of revenue generation, reputation, and prominence. Most recently, the firm has obtained the ‘BBB’ investment grade rating issued by Acuite. As it continues to grow, SCPL focuses on growing its client base organically through carefully forged and nurtured relationships, translating into references, and client acquisition.

Continuing on this growth trajectory, the company’s future expansion plans will primarily focus on the MSME sector, particularly the enti-ties involved in manufacturing and trading activities. Within this segment, the firm will also work towards improving and monitoring its established relationships with clients, ensuring that it becomes a long-term partner fueling client success.