SBI ties-up with three NBFC-MFIs for co-lending to JLGs
The co-lending guidelines were issued by the RBI to improve the credit flow to unserved and underserved segment of the economy.
September 29, 2021 / 07:43 PM IST
State Bank of India (SBI) on September 29 signed a master agreement with Vedika Credit Capital Ltd (VCCL), Save Microfinance Pvt Ltd (SMPL) and Paisalo Digital Ltd (PDL), for co-lending to individual members of Joint Liability Groups (JLG) for them to undertake agriculture and allied activities including other income generation activities.
The tie-up would increase SBI's reach in rural and semi-urban areas to offer small ticket loans. The bank was actively looking at co-lending opportunities with multiple NBFCs/NBFC-MFIs for financing farm mechanisation, warehouse receipt finance, farmer producer organisations (FPOs) to enhance credit flow to double the farmers income.
Dinesh Khara, Chairman, SBI said in a statement, “Co-lending will be pursued as an important tool to increase the micro finance, MSME and affordable housing portfolio. As a first step, we are pleased to announce such arrangement with VCCL, SMPL and PDL for lending to JLGs. We believe this initiative will financially empower millions of people and will augment bank’s vast distribution Network."
"This will also encourage entrepreneurship among the underserved population which in-turn will provide a boost to the Indian economy. We will continue to work with more NBFCs / NBFC MFIs, in order to reach out to maximum customers staying at far flung areas and provide last mile banking services," Khara added.