Central Bank of India, U GRO Capital to disburse MSME loans worth Rs 1,000 cr
Central Bank of India and fintech platform U GRO Capital signed a co-lending agreement to disburse loans worth Rs 1,000 crore to U GRO users in the next 12 months.
Central Bank of India and fintech platform U GRO Capital signed a co-lending agreement to disburse loans worth Rs 1,000 crore to U GRO users in the next 12
months. Users in various MSME segments under programmes like Pratham, Sanjeevani, Saathi, GRO MSME and Machinery financing will benefit from this agreement.
Video Player is loading. Play
Unmute Loaded: 0%
“The co-lending agreement with Central Bank of India will work towards providing formal credit to undeserved MSMEs at affordable rates across all product categories of U GRO Capital,” as per an exchange filing by U GRO. The Central Bank of India will utilise U GRO Capital?s digital technology platform driven by Data Tripod of GST, banking and bureau besides the company?s deep sectoral understanding and multi-channel distribution reach for this purpose.
This collaboration has been enabled by U GRO Capital?s GRO-Xstream platform which integrates banks with multiple fintechs, payments platforms, NBFCs, marketplaces and other digital platforms. GRO-Xstream also empowers banks and large financial institutions to deepen their distribution reach and service MSMEs across India.
U-GRO Capital has also formed marquee partnerships with upstream and downstream BFSI partners that are to be integrated on GRO-XStream. Banks will
co-lend through this platform with the loans originated by U GRO Capital?s distribution network in the initial stage whereas in future other participants on the platform. The GRO-XStream platform will utilise the banks? capabilities on the liability side and U GRO Capital along with its origination partners and underwriting engine on the assets side to democratise MSME credit in India, as per its official communiqué filed with the bourses.
“We believe this initiative will financially empower large section of MSME borrowers. We believe, co-lending as a concept is picking up pace and would change the lending landscape of credit dissemination for MSMEs in India. This agreement in India and contribute towards the mission of Atmanirbhar Bharat by making credit available to MSMEs at an affordable cost,” Central Bank of India Executive Director Rajeev Puri said.
U GRO Capital Executive Chairman and MD Shachindra Nath said that through this partnership with Central Bank of India, they will be able to help MSME borrowers across several interest rate buckets. He added that these collaborations will catalyse financial inclusion efforts aimed at the Indian MSME sector along with enabling their revival and growth.