Small business lending fintech platform U GRO Capital has seen its disbursements reach pre-Covid-19 levels but believes that credit demand is still muted.

“We disbursed about ₹120 crore in February and we are now at a little bit more than that,” said Shachindra Nath, Executive Chairman and Managing Director, U GRO Capital, but noted that the credit demand is largely for sustaining existing businesses.

“Borrowers are not thinking about growth too much,” he said in an interaction with BusinessLine .

Also read: U GRO Capital reports Q1 net profit at ₹3.72 crore

U GRO Capital on Wednesday also announced that it has filed an application with the Indian Patent Office for its distinctive methods and systems for modelling scorecards.

“This has allowed the company to penetrate in a highly unstructured segment, which is driven by physical processes,” it said in a statement, adding that it tackles the unavailability of appropriate MSME database, by utilising its unique classification technique leveraging the proprietary knowledge base and strength of statistical models.

Using this model, it aims to target 2.5 lakh small businesses and extend loans on the basis of data analytics amounting to over ₹30,000 crore in the next four financial years.

The company has made disbursals of ₹1,700 crore in the form of secured and unsecured loans till date.

Also read: U GRO Capital appoints Global Value Creation Partners to drive biz growth

The distinctive underwriting model generates credit score cards customised to suit the peculiarities and nuances of varied business enterprises, it said, adding that this is done by analysing the historical loan delinquency patterns and cash flow within each selected business segment.

The proprietary statistical scorecards for assessment at various stages have been developed in consultations with CRIF and Crisil market experts.

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