Yubi partners SBI to provide credit access to priority sector

Yubi (earlier, CredAvenue) has partnered with the State Bank of India (SBI) to help grow the bank’s co-lending portfolio. SBI will be integrated with Yubi Co.Lend, a co-lending marketplace that enables lenders to collaborate with multiple partners and disburse joint loans to the priority sector.

Yubi is a unified credit platform with a comprehensive product suite catering to all stages of the debt lifecycle.

Based on the Yubi.Co.Lend website, the platform has disbursed loans amounting to Rs. 5,000 crore plus till date. It has 10 lakh plus retail clients and 500 plus partners. The purpose of the strategic alliance is to “facilitate seamless and faster credit to the priority sector, ultimately reducing the country-wide credit gap,” as per the press release. Under the partnership, Yubi Co.Lend will assist SBI in collaborating with an extensive base of non-banking financial companies (NBFCs), housing finance companies (HFCs) and fintechs to grow its co-lending business. Yubi will also build, manage and monitor SBI’s co-lending portfolio. The platform will also ensure all compliance to enhance the user experience. On Yubi’s co-lending platform, SBI can choose its co-lending partners, create its co-lending product programme, and digitally manage operations.

Gaurav Kumar, Founder and CEO, Yubi, said, “We are delighted to partner with SBI and aid them in accelerating credit to the priority sectors in the country as well and deepening debt markets in India. Moreover, Yubi’s tech-enabled end-to-end co-lending infrastructure will help expand their loan portfolio across asset classes. This partnership has the potential to unlock $1 trillion in capital for priority sector lending in tier 2,3,4 cities, small enterprises, and farmers.”

Co-lending provides a framework for cooperation between two financial institutions, such as a bank and an NBFC to jointly fund the customer’s needs. This arrangement combines the low-cost funding of a bank with the local capabilities—sourcing and service experience of an NBFC.