Bank of Baroda, U GRO Capital join hands for co-lending to MSMEs
Pratham is a ₹1,000 crore co-lending program that will allow the MSMEs to avail of customized lending solutions at a competitive interest rate with a significant reduction in turnaround time
PremiumMumbai: U GRO Capital, a non-bank financier, and state-owned Bank of Baroda have partnered for co-lending to the micro, small and medium enterprise (MSME) sector.
Called ‘Pratham’, loan disbursements under this association have commenced on Bank of Baroda’s 114th Foundation Day on Tuesday and adheres to Reserve Bank of India’s (RBI) revised co-lending guidelines, a statement said on We.
Pratham, it said, is a ₹1,000 crore co-lending program that will allow the MSMEs to avail of customized lending solutions at a competitive interest rate with a significant reduction in turnaround time. The loan amount ranges from ₹50 lakh to ₹2.5 crore to be offered at an interest rate starting from 8% with a maximum tenure of 120 months.
Shachindra Nath, executive chairman and managing director, U GRO Capital said, it is a reiteration of the value and trust that the bank places on its ability to leverage sectoral expertise and technology to solve the unsolved credit need of the MSMEs.
“We look forward to nurturing this essential relationship in our bid to support more MSMEs in the remotest locations, to help them revive and grow," said Nath.
Vikramaditya Singh Khichi, executive director, Bank of Baroda said, he believes that forging such partnerships is the way forward and collaborative efforts leveraging individual entities’ expertise are of utmost importance to take co-lending to MSME segment to the next level.
“This is a significant advancement in the same direction," said Khichi.
According to the statement, Pratham program requires minimum documentation while providing financing to MSMEs and allows faster turnaround time, with an in-principle approval issued within 60 minutes.
“A wide range of MSMEs including the recently-added wholesale and retail traders under priority sector can avail credit through this program. The program is accessible to MSMEs across over 200 channel touch points around nine locations," the statement said.
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