This agreement is signed under the guidelines issued by the RBI in November 2020 for co-lending to the Priority Sector. The collaboration will be helping MSMEs to avail customized lending solutions at a competitive rate of interest with a significant reduction in turn-around time. The agreement aims to enhance last mile credit and drive financial inclusion to MSMEs by offering secured loans between Rs 10 lakh to 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.
In a statement, Rajesh Sharma, Managing Director, Capri Global Capital Limited, said, “Through this partnership, the aim is to reach out to a large section of society by offering easy, convenient, and efficient credit solutions and empowering them to be key contributors to fiscal growth. Our focus is to support the grassroots entrepreneurship that creates economic value.”
“The partnership with CGCL is part of UBI’s strategy to support the MSMEs by providing tailor-made financial solutions and accelerating the growth of MSMEs to contribute to the country’s economic development,” said Rajkiran Rai G, MD and CEO, Union Bank of India, in a statement.