Vistaar Finance is a deposit-free non-banking financial company (NBFC) that provides loans to small businesses. Vistaar serves its clients primarily through a network of more than 200 branches.
The company manages assets worth Rs. 2,100 crore, and its credit base includes public and private sector banks, mutual funds, international development agencies and large financial institutions.
Brahmanand Hegde and Ramakrishna Nishtala founded Vistaar Finance in 1991 with the vision of financing small business owners. Vistaar has developed several loan products for SMEs that often do not have the support of traditional financial systems due to different reasons.
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As a primary lender for small businesses, Vistaar Finance is a catalyst for underserved SMEs in India and is committed to promoting their financial inclusion and economic success.
Staff and corporate culture
Vistaar Finance has recently emerged as the best medium sized financial services company to work for in India in the 2021 AmbitionBox ranking. It is also ranked 13th on the list of the top 25 medium-sized companies in India.
According to company representatives, the recent award is a testament to Vistaar’s open culture, where teamwork, transparency and integrity are paramount. At Vistaar, employees have many opportunities to improve their light skills, such as communication or technical skills related to financial products.
Vistaar has had many success stories in its journey. The company has received funding from prominent investors, including Westbridge Capital, Saama Capital, Omidyar Network, and Elevar Equity.
Who does Vistaar Finance help?
Vistaar Finance’s target borrowers are categorised into several businesses such as general supply or grocery stores, household stores, hotels and bakeries, craft stores, clothing stores, and workshops, among others. Vistaar has a unique lending process with an in-depth analysis of each sector.
For loan applicants who have no proof of income, the company is developing innovative income verification options. It also continuously improves its products and credit practices based on changing customer needs and feedback. Business owners have used Vistaar’s credit facilities for various reasons such as working capital, home purchase, and home renovation.
Unique credit method
Since the early days of small business lending, Vistaar believed that each client group needed a unique approach. Start-ups and SMEs need to be able to get loans quickly and easily. Thus, the company is committed to serving its customers with a sustainable separation of partnerships that fasten the process.
Vistaar scrutinises the customer’s business and distinguishes the diagnostic features of their business. Its reference database is regularly maintained and updated. Transactions are continuously monitored and reviewed, and changes are made during credit checks.
Vistaar products are custom-built to suit a wide range of industries to maximise business growth for customers. Its offerings have been increasing in both ticket size and tenor. Vistaar offers different products for quick and easy business loans from Rs. 2 lakh up to Rs. 50 Lakhs.
Its essential loan products are Vistaar Saral Business Loan (VSBL), Vistaar Vyapar Mortgage Loan (VVML), and Vistaar Sampatti Loan (VSL).
Learnings for SMBs and the fintech industry
Loans to SMEs provide small businesses with a credit line to meet the needs of the company. Such loans can be used for working capital or long-term working needs.
As an NBFC, a company can provide regular loans and soft loans (small credit) to various SMEs and start-ups. A credit giving company can get more subsidies and government assistance if it helps small businesses function and expand. NBFCs can potentially replace financial market instruments and manage assets, such as investment portfolio management and equity investment portfolio.
While lending services are beneficial for SMEs and small business owners looking for sources of finance, companies operating in the financial sector and fintech can also reap huge benefits by providing support to small businesses. Entrepreneurs in the fintech and finance sectors can delve into this realm of proving funds and capture the alternative space of Venture Capital funds and traditional investors.
