New Delhi, Jul 4 (KNN) In a significant move aimed at expanding credit access to underserved segments, Axis Bank and Piramal Capital and Housing Finance Ltd (PCHFL) have announced a strategic partnership to co-lend in the micro, small, and medium enterprises (MSMEs) and home loan sectors.

This collaboration seeks to address the persistent credit gap faced by MSMEs and potential homeowners, particularly those in rural and semi-urban areas.

By combining Axis Bank's financial prowess with Piramal Finance's technological expertise, the initiative promises to revolutionize lending practices for middle- and low-income borrowers.

The partnership's primary focus is on customers in the unorganised sector, including self-employed individuals and salaried workers who often struggle to provide traditional income documentation.

Leveraging Piramal Finance's network of 490 branches, the partnership will utilise advanced loan processing technology to assess borrowers' creditworthiness and offer competitive interest rates.

Jairam Sridharan, Managing Director of PCHFL, emphasised the synergistic nature of the partnership, stating, "By combining Axis Bank's extensive network with Piramal Finance's reach, we aim to penetrate deeper into various regions across Bharat. Our goal is to enhance access to formal credit, drive growth, and fulfill the aspirations of customers throughout the country."

This collaboration marks a significant step towards financial inclusion in India, potentially opening up new avenues for economic growth and development in underserved regions.

As the partnership unfolds, it will be interesting to observe its impact on the MSME sector and the home loan market, particularly in terms of credit accessibility and economic empowerment for those at the grassroots level.

The initiative aligns with the broader national agenda of fostering inclusive growth and could serve as a model for future collaborations between traditional banks and new-age financial institutions.

As India continues its journey towards becoming a USD 5 trillion economy, partnerships like these are likely to play a crucial role in bridging the credit gap and driving economic progress across all segments of society.

(KNN Bureau)