2. Micro & Small Enterprises (MSE)

Business Segment: Micro and Small Enterprises (MSE)

Fuelling the firepower of grassroots entrepreneurship

India’s Micro, Small and Medium Enterprises (MSME) segment has now emerged as one of the principal economy drivers, contributing to 30% of the national GDP. The Government of India now plans to enhance the contribution of GDP to approximately 40%. We are committed to partnering this vision - handhold entrepreneurial ambitions, and also help create largescale employment in the country.

During the year, we crossed ₹1,000 Crores Portfolio milestone and 13,000+ customers. We achieved this in only four years since the launch of this segment.

QUICK FACTS
₹517Cr
Disbursement

15% y-o-y img

₹1,286Cr
Outstanding principal (OSP)

31% y-o-y img

13,000+
Total borrower base 6% decrease vs FY 2019-20

10% y-o-y img

img y-o-y growth

img y-o-y de-growth

HIGHLIGHTS OF FY 2020-21
  • Achieved highest ever disbursement for the month and quarter ending in March, 2021
  • Enhanced maximum funding limit to MSME to ₹10 Crores
  • Provided customers best-in-class support in a challenging year
  • Piloted new initiatives such as scan-based file disbursement and video-based customer discussion
  • Implemented the HUB disbursement model in Gujarat and Tamil Nadu
  • Reduced turnaround time (TAT) and improved the quality of services
  • Digitalised loan documentation, further improving the customer experience for hassle-free services
  • Launched our first fintech partnership to start new line of funding in the domain of supply chain finance
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FORAY INTO SUPPLY CHAIN FINANCE THROUGH FINTECH PARTNERSHIP

We entered into a collaboration with a fintech partner, Desiderata Impact Ventures Private Limited (Progcap) for end-to-end digitised invoice-based financing services and repayments for loan applications received from Micro, Small and Medium Enterprise (MSME) units seeking small tenor working capital for their businesses. With this partnership, Ujjivan SFB has ventured into a new avenue of lending namely Supply Chain Finance to fund dealers and sub-dealers against purchases made from recognised brands through short-term overdraft facility. The entire lending process, right from the lead generation, lead screening, loan sanctioning, document execution and customer on-boarding and repayments has been digitised through Progcap’s data-driven tech platform.

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OUTLOOK

Our objective is to develop a robust and streamlined process through digital advancement. We also aim to start new lines of credit and focus on the formal segment with enhanced credit limit to meet working capital requirements of MSMEs. Fintech partnerships will also be targeted to offer diversified products and services for the Indian market.