Protium’s Loan Against Property Helped PSR Enterprises’ Recover from near total shutdown to 5900% Growth
Overview
- Company Name: PSR Enterprises
- Business Owners: Mrs. Rajamma and Mr. Ravindra Reddy Patil
- Industries: PG Accommodation, Wholesale Hardware, Catering
- Location: Bengaluru, Karnataka
- Protium Product: Loan Against Property (LAP)
- Protium Customer Since: 2023
Background
Bengaluru is India’s renowned IT and startup hub which invites many professionals from all over the country. This city also has more than 1000 educational institutions in which a large student population have migrated from other cities. This makes Bengaluru a hub for PG and hostel accommodation for migrants as the PG system cuts through the complexity of signing leases, buying furniture, and managing utility bills.
As per reports, there are more than 20,000 PGs in the city and this has always been a thriving business. Looking at this reality, Mrs. Rajamma and Mr. Ravindra Reddy Patil started the PG Accommodation business in 2011 under the name PSR Enterprises. Under this brand name, the owners operated a thriving multiple-faceted business that include not only PG accommodation but also a catering business and a hardware store.
Business History and Turbulent Times:
PSR Enterprises was running successfully with 11 PGs across Bangalore. However, during the total Covid-19 lockdown, all their customers vacated the premises and went back home. This shutdown harmed the stability of PSR’s PG business massively with only 1 PG running out of 11 that was used for medical professionals.
When the total lockdown was lifted after little more than 2 months, most professionals continued to work from home as their employers demanded due to safety reasons. This situation continued for nearly a year and PSR Enterprises needed funds just to survive. This is when they started looking for additional funding from banks and other financial institutions.
The Protium Lifeline: Funding a Dual Dream
While they were on this hunt, a friend recommended Protium and Mr. Ravindra wasted no time in approaching the NBFC.
Upon presenting their clear plans for revival, Protium approved their loan amount of 3 crs. The journey from documentation submission to loan being sanctioned and ultimately disbursal took happened within just a couple of days and with full transparency. Mr. Ravindra adds, “All team members of Protium were “very helpful” and wasted no time in collating documents that could be digitally procured or verified”. As a result of this, their loan amount was disbursed quite earlier than they expected.
With this loan amount PSR enterprises bounced back in no time. Their PG business flourished to such an extent that Mr Ravindra was not only able to fully repay the loan, but he also approached Protium once again for a second loan. The second round of funding was to be used to purchase a new residential building which could be converted into a yet another PG and expand their business.
| Challenges | Protium’s Solution | Result |
| Pandemic Catastrophe: Reduction in the operational capacity from 11 PGs to 1 PG | Protium’s 1st Loan of ₹3 Crore disbursed swiftly with most of the documents collected and verified digitally | Business owners were able to reinvest and revive their remaining 10 PG properties |
| Expansion: Acquire new revenue-generating assets. | Protium’s 2nd Loan of ₹2.8 Crore approved after reviewing the customer history | Business owners were able to expand and create an asset at the same time. |
Mr Ravindra and Mrs. Rajamma adds, “It’s a good platform that helped us achieve our dreams, goals and we think Protium will definitely offer their best support to other small businesses like us.”
Disclaimer:
*Protium Finance Ltd (Protium) may use the services of various agents on its behalf for the purpose of sales and marketing for Protium’s products and services
*Terms and conditions apply, based on applicant eligibility and financial profile.