Moneyboxx secures term loan worth Rs50 crore from SBI

2 Nov 2022 , 01:15 PM

Moneyboxx Finance Limited has secured Rs50 crore 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 Rs190 crore as of October 2022 to Rs400 crore by March 2023.

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 Rs1-10 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 Rs320 crore, it has transformed lives of over 20k borrowers, of which 45% were women and 38% new-to-credit.

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.

The company’s current branch network stood at 47 branches (opened 17 new branches in this fiscal} and plans to take its branch network to 60 by the end of this financial year. On the back of a strong debt pipeline and planned equity fund raise, the company is confident to reach AUM of INR 400 crores by FY23 and simultaneously ramp up its financial inclusion efforts.

At around 1:15 PM, Moneyboxx Finance was trading at Rs168.05 per share lower by 2.24% on the BSE.

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