Central Bank of India And Kisetsu Saison Finance To Co-lend MSME Loans

New Delhi, Dec 29 (KNN) Central Bank of India on Wednesday signed a strategic co-lending partnership with Kisetsu Saison Finance, India for MSME Loans.

Participation by both entities in this co-lending arrangement will result in greater expansion of the portfolio by Central Bank of India and Kisetsu Saison Finance, India, said the bank in its regulatory filing.

Co-lending or co-origination is a set-up where banks and non-banks enter into an arrangement for the joint contribution of credit for priority sector lending. 

Under this arrangement, both banks and NBFCs share the risk in a ratio of 80:20 (80 per cent of the loan with the bank and a minimum of 20 per cent with the non-banks).

Bengaluru-based M/s. Kisetsu Saison Finance is an NBFC with AUM (Assets under management) of the Company as of September 30, 2023, was more than Rs 8200 crore.

“The Co-Lending arrangement is expected to benefit both the entities to offer convenient experience and customer delight to their customers as well as to expand their reach across India,” said the Central Bank of India.

(KNN Bureau)