SBI signs pact with U Gro Capital for co-lending to MSMEs
The objective of the agreement is to enhance last-mile connect, financially empower MSMEs and further drive financial inclusion in the country, SBI has said
November 17, 2021 / 05:30 PM IST
SBI | Representative image
State Bank of India has entered into a co-lending agreement with fintech firm U GRO Capital to offer financing solutions to micro, small and medium enterprises (MSMEs), the lender said on November 7.
Through this collaboration, SBI and U GRO Capital aim to disburse up to Rs 500 crore by March 2022 to provide credit to MSMEs, a PTI report said.
The agreement is in line with Reserve Bank of India guidelines. The co-lending agreement aims to enhance last-mile connect, financially empower MSMEs and further drive financial inclusion in the country, the public sector bank said in a press release.
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"We are glad to have joined hands with U GRO Capital under the co-lending programme. This collaboration will further enhance our distribution network, as we aim to extend our credit reach to more MSMEs," SBI Chairman Dinesh Khara said in a statement.
The RBI has issued a set of guidelines on co-lending scheme for banks and non-banking financial companies for priority sector lending to improve the flow of credit to unserved and underserved sectors of economy.
The guidelines were also issued 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.