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Union Bank of India, Capri Global Capital tie up for co-lending to MSMEs

The co-lending agreement aims to enhance last-mile finance and drive financial inclusion to MSMEs

Union Bank of India | Capri Global Capital | MSME sector

Press Trust of India  |  New Delhi 

The changes will help in putting a framework in place for the privatisation of the other two PSBs that the government had announced in the Union Budget.

has entered into a co-lending partnership with Capri Global Capital, under which they will disburse loans to MSMEs.

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, and CGCL aim to disburse MSME loans initially across 100 plus touch points across India, it said.

The pact between the two 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, said.

The partnership with CGCL is part of the bank's strategy to bring synergy between both the 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.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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First Published: Wed, November 24 2021. 21:53 IST