In order to help small businesses in energy and infrastructure sectors achieve scale, Shell Foundation and non-bank lender Intellecash today announced a tie-up to provide collateral-free lending to such units.
The credit facility will help provide short-term loans of less than 12-months with sizes of less than Rs 1-crore without insisting on any asset collateral or a multi-year profitability record, a press release issued here today said.
It will provide short term working capital against specific anticipated cash inflows, such as an order or government subsidy and the partners expect to disburse over $10-million in the next 2-3 years, it added.
"The credit facility aims to address the structural gap that currently exists in the financial market, mainly the unavailability of small loans, which is a key bottleneck in the growth of small businesses," the release said.
Clients will also be offered business and financial advisory services, it added.