CGCL & Union Bank of India join hands to co-lend MSMEs upto Rs 100 lakh
Mumbai, 24 Nov (KNN) Capri Global Capital Limited (CGCL), a NBFC focused on MSMEs has entered into a Co-Lending agreement with the Union Bank of India (UBI), to offer MSMEs loans.
Through this collaboration, CGCL and UBI aim to disburse MSME loans across 100+ touch points pan-India, and the loan disbursement under this arrangement would commence from December 2021, said the official release.
This agreement is signed under the Co-Lending guidelines issued by RBI in November 2020 for Co-Lending to the Priority Sector. The collaboration will be helping MSMEs to avail customized lending solutions at a competitive rate of interest with a significant reduction in turn-around time.
The Co-Lending agreement aims to enhance last-mile credit and drive financial inclusion to MSMEs by offering secured loans between INR 10 lakhs to INR 100 lakhs. It will also entail joint contribution of credit to the prospective MSME customers in Tier II and Tier III markets, as mentioned in the release.
Speaking on the development, Rajesh Sharma, Managing Director, Capri Global Capital Limited, said, “We are glad to partner with Union Bank of India. Our association with the centenarian bank has always proved to be a positive reinforcement of our aspirations and values. Their accommodative business solutions and customized services have proved to be a boon for our business model. Through this partnership, the aim is to reach out to a large section of society by offering easy, convenient, and efficient credit solutions and empowering them to be key contributors to fiscal growth. Our focus is to support the grassroots entrepreneurship that creates economic value.”
Rajkiran Rai G, MD and CEO, Union Bank of India said, “The partnership with CGCL is part of UBI’s strategy to support the MSMEs by providing tailor-made financial solutions and accelerating the growth of MSMEs to contribute to the country’s economic development. Over the years, CGCL has built the required experience, knowledge and technology to handle small ticket collateral-based loans to businesses. There is a lot of synergy and philosophical match between both the companies that will help us serve the most deserving and underserviced businesses in smaller towns across the country.”
The partnership was signed in the presence of Rajkiran Rai G. - Managing Director & CEO, UBI and Rajesh Sharma – Managing Director, Capri Global Capital Limited. Under this joint effort, the benefit of low-cost funds from UBI and efficient operations of CGCL would be passed on to the borrowers.