U GRO Capital aims to lend Rs. 500 cr to MSMEs

Mumbai, 17 Nov (KNN) U GRO Capital, today announced that it is going to co-lending through a partnership with State Bank of India (SBI), to provide credit to the micro, small and medium enterprises (MSME).

The aim of both the parties in this association is to disburse upto INR 500 crore by March 2022, said the release.

This adds to credit products under U GRO’s Sanjeevani program, offering loans upto INR 3 crore, at competitive rate of interest.

The MSME lending fintech platform had launched ‘Sanjeevani’ as a solution to provide credit to pandemic impacted MSME sector as an end-to-end digital lending program in June 2020 and has disbursed over INR 750 crore, as of October 31, 2021.

Speaking on this occasion, Dinesh Khara, Chairman, State Bank of India said, “We are glad to have joined hands with U GRO Capital under the co-lending program. This collaboration will further enhance our distribution network, as we aim to extend our credit reach to more MSMEs.”

He highlighted on the alignment of the partnership with the commitment to accelerate effective and affordable credit to MSMEs in India and contribute to the country’s financial inclusion imperative towards building an Atmanirbhar Bharat.

Shachindra Nath, Executive Chairman and Managing Director, U GRO Capital said, “India’s lending landscape for NBFCs is transitioning, we believe that next decade is all about collaboration between large banks and niche NBFCs / FinTech wherein Lending as a Service would become the prominent force. Today marks a significant day in U GRO Capital’s business journey, and we are elated to sign a co-lending agreement with the country’s largest lender, State Bank of India. This partnership reiterates SBI’s faith and value, in our ability to leverage sectoral expertise and technology capabilities to address the critical MSME credit needs.”

U GRO Capital, currently has 55 branches across 9 states. It aims to expand the branch network to 100 by FY2022. By 2025, U GRO envisions to achieve 1% market share of outstanding MSME credit in India and serve 1 Million customers.