BackSBI signs pact with U Gro Capital to finance MSMEs
SBI is actively looking at co-lending opportunities with multiple NBFCs through their products for financing the MSMEs
PremiumMumbai: The State Bank of India (SBI), has entered into a Co-Lending agreement with U GRO Capital to offer strategic financing solutions to the unserved and underserved MSMEs of the country in line with RBI guidelines.
SBI is actively looking at co-lending opportunities with multiple NBFCs through their products for financing the MSMEs and to enhance the last mile connect. This initiative will financially empower MSMEs and further drive financial inclusion in the country.
The partnership was signed in the presence of Shri Dinesh Khara, Chairman, SBI, Shri C.S. Setty, MD (Retail & Digital Banking), SBI and Shri Shachindra Nath, Executive Chairman and MD, U GRO Capital.
“We are glad to have joined hands with U GRO Capital under the co-lending program. This collaboration will further enhance our distribution network, as we aim to extend our credit reach to more MSMEs. Such partnerships align with our commitment to accelerate effective and affordable credit to MSMEs in India and contribute to the country’s financial inclusion imperative towards building an Atmanirbhar Bharat." SBI Chairman Dinesh Khara said.
Shachindra Nath, Executive Chairman and Managing Director, U GRO Capital said, “India’s lending landscape for NBFCs is transitioning, we believe that next decade is all about collaboration between large banks and niche NBFCs / FinTech wherein Lending as a Service would become the prominent force. Today marks a significant day in U GRO Capital’s business journey, and we are elated to sign a co-lending agreement with the country’s largest lender, the State Bank of India. This partnership reiterates SBI’s faith and value, in our ability to leverage sectoral expertise and technology capabilities to address the critical MSME credit needs."
RBI had issued guidelines on the co-lending scheme for banks and NBFCs for Priority Sector Lending to improve the flow of credit to unserved and underserved sectors of the economy and to make funds available to borrowers at an affordable cost. The co-lending model aims to give the borrower the best interest rate and better reach.
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