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Business News/ Companies / News/  Union Bank of India partners with Ambit Finvest for co-lending to MSMEs
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Union Bank of India partners with Ambit Finvest for co-lending to MSMEs

This alliance will ensure underwriting for originations, positively impacting the creditworthiness of MSMEs, in 11 states that are currently covered by Ambit Finvest, the company said

MSMEs will now enjoy a blended lower rate of interest, translating into a lower cost of funds, Ambit Finvest saidPremium
MSMEs will now enjoy a blended lower rate of interest, translating into a lower cost of funds, Ambit Finvest said

Ambit Finvest Private Limited (Ambit Finvest), the Non-Deposit taking Non-Banking Financial Company (NBFC) of the Ambit Group has signed a co-lending agreement with Union Bank of India (UBI) for lending to Micro, Small and Medium Enterprise (MSME) customers.

This alliance will ensure underwriting for originations, positively impacting the creditworthiness of MSMEs, in 11 states that are currently covered by Ambit Finvest. Many MSMEs face challenges of higher interest rates or are excluded from access to banking services, the company said in a release. 

“Through this innovative model of lending, MSMEs will now enjoy a blended lower rate of interest, translating into a lower cost of funds, helping them deploy capital more effectively in their business," the statement added.

“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 underserviced 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.

Sanjay Dhoka, COO & CFO, Ambit Finvest said with this alliance, Ambit Finvest and Union Bank of India aim to facilitate speedy disbursal of credit across different geographies. “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," he added.

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Published: 01 Mar 2022, 12:27 PM IST
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