Small Steps To A Big Gain
Auto parts maker Emdet Group, founded in 1959 by late Dev Mitter, had a 28 year long relationship with Oriental Bank of Commerce. But his grandson, and Executive Director of the company, Nishchay Mitter, switched to a private bank. "Despite a consistent track record of timely payments and maintaining healthy balance sheet, OBC kept charging 12 per cent interest rate even on incremental loans, not to mention the long turnaround time and 110 per cent collateral on the credit amount. So, I went to Axis Bank, which offered me 8.9 per cent interest rate," he says. However, for working capital needs, Mitter reached out to LivFin, a supply chain and invoice financier. "Interest rates are no doubt higher, but they disburse the loan in 72 hours." Mitter never considered government loan initiatives given his experience with OBC.
Dimple Sachdev, owner of leather products company Drishti Lifestyle, explores all schemes that the government launches. She, in fact, attended the launch of the 59 minute loan in November 2018. The portal is an online marketplace where micro, small and medium enterprises (MSMEs) can get
