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Central Bank, ECL Finance ink pact to co-lend to MSMEs

Updated: Sep 02, 2019 05:43:02am
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Central Bank, ECL Finance ink pact to co-lend to MSMEs

New Delhi, Sep 2 (KNN) The Central Bank of India has signed an agreement with ECL Finance, a subsidiary of Edelweiss Financial Services, for co-origination of loans to micro, small and medium enterprise (MSME) customers.

The partnership is aimed at facilitating speedy disbursal of credit across products, including machinery and business loans, Edelweiss Group said in a statement.

Through this partnership, MSMEs will be offered blended lower rate of interest, translating into a lower cost of funds, helping them deploy capital more effectively in their business, it said.

Speaking on the development, Chairman and CEO of Edelweiss Group Rashesh Shah said that RBI's guidelines on Co-Origination are commendable. This is also in line with our strategy to partner public sector enterprises to increase financial penetration and provide easier access to credit products to MSMEs, who form the backbone of the Indian economy.”

“We are delighted to work with the Central Bank of India, to leverage our joint strengths and our large network of clients across India”, he added.

MD & CEO, Central Bank of India, Pallav Mohapatra said "The Finance Minister announced slew of growth oriented measures last Friday and had asked Banks to implement Co-Origination platforms to extend financial support to MSMEs, who are the major contributor to exports, GDP and also generate large scale employment.”

This partnership shall enable us to collaborate and harness technology, bring in the best practices in credit underwriting finer pricing and render a far superior experience in terms of turnaround time to customers, he added.

“We believe that the Co-Origination model will enable easier access to credit under Priority Sector lending for the MSME segment”. Said Mohapatra.

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