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Mumbai: Capri Global Capital Ltd (CGCL), a non-bank lender focused on small businesses and affordable housing, on Wednesday entered into a co-lending agreement with Union Bank of India.
Through this collaboration, CGCL and Union Bank aim to disburse micro, small and medium enterprise (MSME) loans across over 100 touch points in India. The loan disbursement under this arrangement would commence from December 2021.
A statement said that the agreement was signed under the co-lending guidelines issued by the Reserve Bank of India (RBI) in November 2020 for co-lending to the priority sector.
The collaboration, it said, will help MSMEs avail customized lending solutions at a competitive rate of interest with a significant reduction in turn-around time. The co-lending agreement aims to enhance last-mile credit and drive financial inclusion to MSMEs by offering secured loans between ₹10 lakh and ₹1 crore.
Rajkiran Rai G, chief executive, Union Bank of India said that the partnership with CGCL is part of the bank’s strategy to support the MSMEs by providing tailor-made financial solutions and accelerating the growth of MSMEs to contribute to the country’s economic development.
“There is a lot of synergy and philosophical match between both the companies that will help us serve the most deserving and underserviced businesses in smaller towns across the country," said Rai.
Rajesh Sharma, managing director, Capri Global Capital said, “Through this partnership, the aim is to reach out to a large section of 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."
