The Business Bytes
TBB BUREAU
MUMBAI, NOV 29, 2021
Capri Global Capital Limited (CGCL), a leading NBFC focused on lending to MSMEs, and affordable housing finance segment has entered into a Co-Lending agreement with country’s largest public-sector bank State Bank of India (SBI) to offer MSME loans. Through this collaboration, CGCL and SBI aim to disburse MSME loans initially across 100-plus touch points pan-India. The loan disbursement under this arrangement would commence from December 2021.
This agreement is signed under the Co-Lending guidelines issued by RBI in November 2020 for Co-Lending to the Priority Sector. The collaboration will help MSMEs to 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 finance and drive financial inclusion to MSMEs by offering secured loans between Rs 10 lakh and Rs 100 lakh. The Co-Lending arrangement will entail joint contribution of credit to the prospective MSME customers in Tier II and Tier III markets.
Speaking on the development, Capri Global Capital Ltd Managing Director Rajesh Sharma said, “We are delighted to partner with India’s largest bank. Our combined synergies are ideally placed to provide customized financial solutions to the borrowers. SBI’s wide reach and trust in the market, coupled with our connection with the underserved borrowers, state-of-the-art IT infrastructure, increasing customer reach and underwriting functions will further enhance our distribution network. This collaboration will create win-win business opportunities for all stakeholders. To the borrowers, it would mean more choice to avail innovative offerings, including attractive loan rates and faster approvals.”
SBI Chairman Dinesh Khara said, “Banks are the backbone of India’s economic growth and as the country pivots to sustainable growth, the banking sector will have to accelerate MSME lending. To improve the credit to the underserved and unserved, we are happy to associate with Capri Global Capital. We believe this collaboration will provide the nimble footedness of NBFC and quality credit to right set of population which will further deepen lending to MSMEs through the last mile connect. We are also confident that, in days to come, co-lending can generate employment opportunities through MSMEs which can translate into the country’s GDP growth.”
Under this joint effort, the benefit of low-cost funds from SBI and efficient operations of CGCL would be passed on to the borrowers.
