Union Bank of India, Ambit Finvest tie-up for co-lending to MSMEs
1 min read 01 Mar 2022, 12:45 PM ISTThis tie-up will enable underwriting for enterprises in 11 states that are currently covered by Ambit Finvest
PremiumAmbit Finvest, on Tuesday, said it has signed a co-lending agreement with Union Bank of India (UBI) for lending to Micro, Small and Medium Enterprise (MSME) customers. Ambit Finvest is the non-deposit taking Non-Banking Financial Company (NBFC) of the Ambit Group.
This tie-up will enable underwriting for enterprises in 11 states that are currently covered by Ambit Finvest. “Ambit Finvest is delighted to be partnering with Union Bank of India, in increasing the reach of credit to service the needs of the MSME segment. With this alliance, Ambit Finvest and Union Bank of India aim to facilitate speedy disbursal of credit across different geographies," said Sanjay Dhoka, COO and CFO, Ambit Finvest.
Through this model of lending, MSMEs that face challenges of higher interest rates or are excluded from access to banking services will get lower rates of interest, which will translate into lower cost of funds, helping them deploy capital more effectively in their business, the company said in its statement.
“The partnership with Ambit Finvest Pvt Ltd. is part of UBI’s strategy to bring synergy between both the companies that will help us serve the most deserving and underserved businesses. This initiative is a part of Union Bank’s commitment to support the MSMEs by providing tailor-made financial solutions and accelerating the growth of MSMEs to contribute to the country’s economic development," said Lal Singh, CGM, MSME, Union Bank.
Dhoka further added that the co-lending partnership with a large organisation like Union Bank of India will help Ambit Finvest further expand its footprint in the MSME segment.
