Union Bank of India has entered into a co-lending partnership with Capri Global Capital, under which they will disburse loans to MSMEs.
Capri Global Capital Ltd (CGCL) is a non banking financial company focused on lending to MSMEs and the affordable housing finance segment.
The co-lending agreement aims to enhance last-mile finance and drive financial inclusion to MSMEs by offering secured loans between Rs 10 lakh to Rs 1 crore, the public sector lender said in a statement.
Through this collaboration, Union Bank of India and CGCL aim to disburse MSME loans initially across 100 plus touch points across India, it said.
The pact between the two companies is as per the guidelines issued by RBI in November last year on co-lending to the priority sector.
The collaboration will help MSMEs avail customised lending solutions at a competitive rate of interest with a significant reduction in turn-around time.
Both the entities will entail joint contribution of credit to the prospective MSME customers in tier II and III markets.
"Union Bank is committed to supporting MSMEs by providing tailor-made financial solutions and accelerating the growth of MSMEs to contribute to the country's economic development," Rajkiran Rai G, MD and CEO, Union Bank of India said.
The partnership with CGCL is part of the bank's strategy to bring synergy between both the companies that will help serve the most deserving and underserved businesses in smaller towns across the country, he said.
"Through this partnership, the aim is to reach out to a large section of the society by offering easy, convenient, and efficient credit solutions and empowering them to be key contributors to fiscal growth. Our focus is to support the grassroots entrepreneurship that creates economic value," Rajesh Sharma, Managing Director, CGCL said.
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