Mumbai, 7th October 2024: In line with their continued focus and commitment to support the burgeoning MSME sector and in order to bridge the gap in financing in India, Arka Fincap Limited, a NBFC, part of Kirloskar Group, is proud to announce the launch of ‘Uday’, its new Small Ticket Loan Against Property (STLAP) product offering. These loans will be available to the MSME business owners within the ticket size ranging from ₹10 lakh to ₹30 lakh. This product aims to address the growing credit needs of small businesses across Tier 2, 3, and 4 cities and towns, providing vital financial support for their growth and expansion. ‘Uday’ would be rolled out, initially, in five key locations in Tamil Nadu viz. Salem, Vellore, Tirupur, Porur, and Coimbatore, this launch marks the beginning of a broader, pan-India expansion deeper into Bharat. Arka Fincap Limited has ambitious plans to extend the product’s reach to MSMEs across the country, ensuring that small business owners in various regions can benefit from this accessible and flexible credit solution. "Our foray into the Small Ticket Loan Against Property product segment with ‘Uday’ is a part of our constant endeavour to empower MSMEs, particularly in underserved regions," said Vimal Bhandari, Executive Vice Chairman and CEO, Arka Fincap. "By providing quick and reliable access to credit, we can help foster the entrepreneurial spirit in smaller cities and towns, driving growth from the grassroots level. We are committed to creating financial inclusion and supporting the backbone of India’s economy—the MSMEs." Navin Saini, Chief Business Officer – Retail & MSME Lending, Arka Fincap, added: " We are excited to introduce 'Uday', our latest product offering, marking a significant step forward as we expand our presence in the Small Ticket Loan Against Property (STLAP) segment. While this market has traditionally been dominated by Small Finance Banks and large NBFCs, we see a tremendous opportunity to stand out by delivering customer-focused and tailored solutions that cater specifically to the unique needs of MSMEs." The launch of ‘Uday’ is a key milestone in Arka Fincap’s broader mission to provide customized, accessible financial solutions for MSMEs throughout India. With a focus on helping businesses succeed, ‘Uday’ will serve as a critical tool in addressing the credit gap faced by many MSMEs, enabling their long-term growth and sustainability. As a non-banking financial company (NBFC), and with a CRISIL rating of AA/ Stable for long term and A1(+) for short term borrowings with a positive outlook, Arka ably offers growth capital to businesses. Arka Fincap’s AUM (as on 30th June, 2024) is at Rs. 5768 Cr. with 53% contributed by the SME business. Arka has currently rolled out this product in the Southern market which will soon be offered in other regions. About Arka Fincap: Arka Fincap Limited started in 2018 as a subsidiary of Kirloskar Oil Engines Limited (KOEL), growing from the intrinsic learnings of its 130-year-old legacy. Arka operates in four main business segments: MSME & personal lending, corporate lending, real estate & urban infrastructure financing and syndication. As a non-banking financial company (NBFC), and with a CRISIL rating of AA/ Stable for long term and A1(+) for short term borrowings with a positive outlook, Arka ably offers growth capital to businesses. As on as on 30th June 2024, Arka’s AUM was INR 5768 Cr with the retail AUM constituting 53% of the total AUM. From the presence across 34 branches in India as on 30th June 2024, Arka has been expanding its reach to enable businesses across the nation to get ahead. Corporate Communications: Megha Jamb - megha.jamb@arkaholdings.com Onkar Kanade – onkar.kanade@arkaholdings.com

Mumbai, 17th July 2024: Arka Fincap Limited, a NBFC and part of Kirloskar Group, partners with Central Bank of India under co-lending arrangement. With this partnership, Arka will offer loans to MSMEs at competitive rates, further expand their reach across India and continue to offer convenience and a delightful experience to their customers. As part of the collaboration, Arka will originate and process loan proposals under MSME sector as per jointly formulated credit parameters and eligibility criteria and Central Bank of India will take into its books 80% of the MSME loans under mutually agreed terms. Arka will service the accounts throughout the life cycle of the loans. Amit Kumar Gupta, Group Chief Financial Officer, Arka Fincap Limited, commented on the partnership, “This partnership aligns with our strategy to expand our retail lending portfolio. It positions us well to explore new growth opportunities and adapt to the ever-evolving financial landscape to change the story of India’s MSME sector to get ahead” Navin Saini, Chief Business Officer – Retail & MSME, Arka Fincap Limited, said, “The co-lending partnership with Central Bank of India is a step towards our goal to fill the credit gap of MSMEs, grow our portfolio and be the first-choice NBFC in the business loan segment for the MSME sector. This partnership represents a significant step towards achieving these long-term strategic goals. The competitive rates offered would benefit the MSMEs availing the loan.” Arka operates in four main business segments: MSME & SME lending, corporate lending, real estate and urban infrastructure financing and syndication. It offers innovative financing solutions that enables their customer’s businesses by providing them with timely growth capital. As on 31st March 2024, Arka had an AUM of INR 5,200 Cr and 31 branches spread across 13 states with the retail AUM constituting 50% of the total AUM. By 2025, it aims to reach an AUM in excess of INR 7,000 Cr and be present across 45 branches. About Arka Fincap Limited: Arka Fincap Limited started in 2018 as a subsidiary of Kirloskar Oil Engines Limited, growing from the intrinsic learnings of its 130-year-old legacy. Arka Fincap Limited is a customer-focused, digitally enabled, analytics driven, Non-Banking Financial Company which provides secured and unsecured financing solutions to MSMEs, SMEs, developers, and corporates. Corporate Communications: Megha Jamb (megha.jamb@arkaholdings.com)

On World MSME Day, Arka Fincap Limited announced a 0% processing fee on top-up loans for a short time, till July 27, 2024. The purpose of this unique offer is to give MSMEs extra financial support so they may grow their enterprises without having to pay more. An NBFC and subsidiary of Kirloskar Oil Engines Limited (KOEL) is Arka Fincap. Navin Saini, Business Head – Retail SME & MSME, Arka Fincap Limited, said, “At Arka, we deeply value our customers and are committed to supporting their growth and success. On World MSME Day, we are pleased to offer a 0% processing fee on top-up loans for our existing customers. This special offer is our way of expressing gratitude for their trust and loyalty, helping them access the additional funds they need to expand their businesses without incurring extra costs. We believe in empowering our nation’s MSMEs to achieve greater heights, and this is just one of the many ways we show our dedication to their financial well-being.”

Arka Fincap Limited, an NBFC and subsidiary of Kirloskar Oil Engines Limited (KOEL), has been given a Certificate of Registration to function as a Corporate Agent (composite) by India’s Insurance Regulatory and Development Authority (IRDAI). This registration allows Arka to expand into insurance distribution, adding to its existing financial solutions portfolio to meet consumers’ diverse needs. With this announcement, Arka Fincap will diversify its product portfolio, allowing it to enter a new area and capitalise on growing prospects. With ‘Customer centric, every time’ as one of its core beliefs, the organisation will enable its clients to achieve business objectives while shielding them from uncertainty.

Arka Fincap, a non-bank lender promoted by the Kirloskar Group, on Tuesday said it is aiming to add another Rs 800 crore to its Assets Under Management (AUM) by March 2024. The shadow bank, which announced its plans to raise up to Rs 300 crore from a non-convertible debentures issue, will be focusing on lending to small businesses going forward, according to a statement. Its AUM currently stands at Rs 4,200 crore and the NBFC is aiming to close FY24 with an AUM of Rs 5,000 crore, the statement said. Further, it said the company plans to open 10 more branches by March to take its overall network to 40 branches, and will be adding about 175 employees to take its overall staff size to 500 by March 2024. Kirloskar group had infused Rs 1,000 crore into the NBFC commenced operations in 2019. ​​​​​​​ It is offering coupons of up to 10 per cent on the NCDs, the statement said, adding that the NCDs come in three tenors of 24 months, 36 months and 60 months.

Arka Fincap announced the public issue of non-convertible debentures (NCDs) worth Rs 300 crore on December 5. NCDs will have a face value of Rs 1,000 each. The base issue size for the offer is Rs 150 crore. There is also a green shoe option of Rs 150 crore if the issue is oversubscribed. Tranche I issue will open on December 7 and will close on December 20. JM Financials and Nuvama Wealth Management are the lead managers of the issue. CRISIL gave an AA-/Postitive rating for the NCDs. The NCD’s coupon rates are between 9 and 10 percent per annum with quarterly and annual interest options. The company in a press release said that the NCDs will have three tenors: 2 years, 3 years and 5 years with effective yield in these tenors at 9.29 percent, 9.62 percent and 9.99 percent, respectively. The company said the NCDs will be listed on BSE. Arka Fincap added that 75 percent of the funds will be utilised for “onward lending, financing, and for repayment of interest and principal of existing borrowings of the Company and the balance is proposed to be utilized for general corporate purposes”. “We believe that we have a well-diversified funding profile that underpins our strong liquidity management system, our strong credit rating and brand equity. The public issue of NCDs is in line with our strategy of liability diversification,” Vimal Bhandari CEO of Arka Fincap said.

Kirloskar Capital, a wholly-owned subsidiary of Kirloskar Oil Engines and part of Kirloskar Group, has undergone a repositioning of its brand and changed its name to Arka Fincap Limited. Atul Kirloskar, Executive Chairman, Kirloskar Group, said the NBFC industry is at the cusp of new beginnings and holds tremendous untapped opportunities. “With the government stimulus measures and reforms, integration of technology and greater corporate governance, Arka Fincap is poised for growth based on its patient capital approach.”