BoB-PAISALO co-lending pact to offer Small Ticket Income Generation Loans for MSMEs and women entrepreneurs

Mumbai, Mar 25 (KNN) Bank of Baroda (BoB) and Paisalo Digital Limited, a non-deposit taking NBFC have tied up to provide access to small-ticket finance for income generation to MSMEs and women entrepreneurs under the Co-Lending Loan Agreement.

This partnership is in line with the RBI’s circular on co-lending by banks and NBFCs to the priority sector to improve the flow of credit to unserved and underserved segments.

The purpose of this co-lending arrangement is to leverage the Bank’s low cost of funds & credit assessment expertise combined with Paisalo’s rule engine-based loan origination and underwriting capabilities, with the help of an end-to-end digital platform for sourcing, servicing and recovery of small-ticket income generation priority sector loans.

Speaking on the partnership with BoB, Santanu Agarwal, Deputy CEO, Paisalo Digital Limited said that it’s a huge huge opportunity for the NBFC as it is well-positioned to capitalise on the huge Rs 8 lakh crore market of small-ticket loans for India’s 365 million under-banked and under-serviced population.

“The Bank of Baroda-Paisalo Co-Lending Product is a big step towards Paisalo’s goal of creating the most competitive and seamless banking solution for India's Bottom of the Pyramid population,” he added.

Dhrubashish Bhattacharya, Head – MSME Business, Bank of Baroda said, “This agreement with Paisalo enables Bank of Baroda to tap and serve a substantial market segment – small businesses, women-led enterprises, agri/ allied agri ventures – which hitherto have found it difficult to access formal sources of financing. 

Further this arrangement between Bank of Baroda and Paisalo will help us in extending credit to the priority sector and promoting financial inclusion.” (KNN Bureau)