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SBI And Capri Global Collaborate To Provide Customised Loans To Small Businesses

Sapna Bhardwaj
Sapna Bhardwaj Nov 30 2021 - 3 min read
SBI And Capri Global Collaborate To Provide Customised Loans To Small Businesses
Aiming to boost MSME lending in India with the vision to drive financial inclusion with secured loans between 10 INR to 100 INR.

State Bank of India (SBI) has always powered and worked very closely towards empowering the MSMEs. The Indian multinational public sector bank and financial services statutory body headquarter in Mumbai has been constantly associated with various NBFCs to work towards creating lending opportunities for the SMEs.

Empowering the SMEs financially is half the work done; this prime reason is addressed very well by the largest public sector bank in the country. Capri Global Capital Limited and SBI have entered into a co-lending arrangement. This is an excellent initiative in the right direction which will provide the necessary momentum of providing SME loans as a financial inclusion in the country. This collaboration will allow Capri Global and SBI to disburse loans to small businesses and SMEs. From December 2021, the process would begin initially across 100 touch point’s pan-India.

Rajesh Sharma, Managing Director, Capri Global Capital Ltd said, “We are delighted to partner with India’s largest bank. Our combined synergies are ideally placed to provide customized financial solutions to the borrowers. SBI’s wide reach and trust in the market, coupled with our connection with the underserved borrowers, state-of-the-art IT infrastructure, increasing customer reach, and underwriting functions will further enhance our distribution network. This collaboration will create win-win business opportunities for all stakeholders. To the borrowers, it would mean more choice to avail innovative offerings, including attractive loan rates and faster approvals.”

This association aims to offer strategic and customised financing solutions to the underserved MSME of India; this is in sync and in line with the guidelines of the Reserve Bank of India (RBI).

Dinesh Khara, Chairman, SBI said, "To improve the credit to the underserved and unserved, we are happy to associate with Capri Global Capital. We believe this collaboration will provide the nimble footedness of NBFC and quality credit to the right set of the population which will further deepen lending to MSMEs through the last mile connect. We are also confident that, in days to come, co-lending can generate employment opportunities through MSMEs which can translate into the country’s GDP growth.”

Keeping in preview the Priority Sector Lending, RBI had recently issued guidelines on the co-lending scheme for banks and NBFCs. The prime intent of the co-lending scheme was to make funds available to borrowers at an affordable cost and to continue the flow of credit to the unserved and underserved sector of the economy. The MSME sector tops the list for the same. Best interest rate and better reach to the borrower is the mission of the co-lending model.

The MOU was exchanged in the presence of Rajesh Sharma, Managing Director, Capri Global Capital Limited, S. Salee, DMD SME, Agri, and FI, SBI; C.S. Setty, MD Retail & Digital Banking, SBI and Dinesh Khara, Chairman, SBI.

With this the MSMES would now be able to avail to customised lending solutions with competitive rate of interest with a reduction in turn-around time. The agreement aims to enhance last-mile finance and drive financial inclusion to MSMEs by offering secured loans between 10 INR to 100 INR. MSME customers in Tier II and Tier III markets will be able to entail a joint contribution of credit.

Rajesh Sharma, Managing Director, Capri Global stated that this collaboration will create win-win business opportunities for all stakeholders. To the borrowers, it would mean more choice to avail offerings, including attractive loan rates and faster approvals.

Banks are the backbone of India's economic growth and as the country pivots to sustainable growth, the banking sector will have to accelerate MSME lending. Collaborations such as these provide nimble footedness of NBFC and quality credit to the right set of the population which will further deepen lending to MSMEs through the last mile connection. In the days to come co-lending will generate employment opportunities through MSMEs which will translate into the country's GDP growth.

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