U GRO Capital on December 22 signed a co-lending agreement with Central Bank of India. Under this partnership, the two entities aim to disburse upto Rs. 1000 crores to U GRO Capital‘s varied MSME segments.
The non-bank lender said the agreement with Central Bank of India will work towards providing formal credit to underserved MSMEs at affordable rates across all product categories of U Gro Capital.
It also added that the collaboration has been enabled by U GRO Capital’s APIs with banks on one side and multiple fintechs, payments platforms, NBFCs and neobanks on the other end.
Rajeev Puri, Executive Director, Central Bank of India stated, “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 is in line with the Central Bank of India’s objective to accelerate the credit to MSMEs in India and contribute towards the mission of Atmanirbhar Bharat by making credit available to MSMEs at an affordable cost.”
Shachindra Nath, Executive Chairman and Managing Director, U GRO Capital said, “We are delighted to sign the MoU for a co-lending arrangement with the Central Bank of India. We are witnessing an inflection point in MSME lending with the enhanced utility of the Data Tripod – i.e. GST, Banking and Bureau. For the first time UGRO Capital is signing a Co – Lending arrangement for all the programs which include Pratham, Sanjeevani, Saathi, GRO MSME and Machinery Finance. It is expected that U GRO would do approximately Rs. 1000 Crores disbursements through this tie up in next twelve months. Also, with this partnership, U GRO is now able to serve the entire spectrum of MSME borrowers across various interest rate buckets. Collaborations like these, will further catalyze the financial inclusion efforts for Indian MSMEs.”
