Central Bank of India signs MSME co-lending pact with ISFCL

New Delhi, June 2 (KNN) Central Bank of India and India Shelter Finance Corporation Limited (ISFCL) have entered into a co-lending agreement to provide competitive Micro, Small, and Medium Enterprises (MSME) loans.

This initiative is expected to drive portfolio expansion for both the public lender and ISFCL, benefiting a wider range of borrowers.

Under the co-lending arrangement, ISFCL will originate and process MSME loan proposals according to jointly formulated credit parameters and eligibility criteria.

Central Bank of India will then assume 80 per cent of the MSME loans on agreed terms.

ISFCL will continue to service the loan accounts throughout the loan's life cycle.

This collaboration is expected to provide a seamless and customer-centric experience, while enabling both entities to expand their market presence across India.

The partnership between Central Bank of India and ISFCL represents a strategic move to enhance financial inclusion for MSMEs, which play a vital role in India's economic growth.

By combining their strengths and resources, the two institutions aim to cater to the financing needs of MSMEs more effectively and efficiently.  (KNN Bureau)