BOI to tap MSME portfolio through co-lending with IKF Finance for Commercial Vehicle Loans

Vijayawada, Mar 11 (KNN) As a strategy to build MSME portfolio, Bank of India (BOI) has partnered with IKF Finance Limited (IKF) to co-lend for Commercial Vehicle Loans.

IKF is a Vijayawada based Non-Banking Financial Company (NBFC), and the disbursement under the co-lending pact started earlier this week.

The concept of co-lending was introduced by the Reserve Bank of India (RBI) to extend the credit flow to the unserved and underserved sector.

NBFCs tend to have wider outreach and coverage in the MSME sector which would benefit banks in creating MSME portfolios.

BOI has its own set of MSME schemes aimed at MSME enterprises that allow them to conduct business in a fair and hassle free manner.

It also offers MSME loan schemes proposed by the central government such as Credit Linked Capital Subsidy (CLCS) component of Credit Linked Capital Subsidy and Technology Up-gradation scheme (CLCS-TUS).

The maximum amount of loan available is dependents on the location of the units.  (KNN Bureau)