India’s largest public sector lender State Bank of India has entered into a co-lending arrangement with Capri Global Capital (CGCL) to boost MSME sector. The collaboration aims to offer strategic and customised financing solutions to the underserved MSMEs of the country in line with RBI guidelines.
The partnership would pave way for disbursal of MSME loans across 100+ touch points pan-India in the beginning. The loan disbursement under this arrangement would commence from December 2021.
“This agreement is signed under the co-lending guidelines issued by the RBI in November 2020 for co-lending to the priority sector. The collaboration will help MSMEs to avail customised lending solutions at a competitive rate of interest with a significant reduction in turn-around time,” a statement said.
Speaking about the tie-up, Capri Global Managing Director Rajesh Sharma said the combined synergies between Capri and SBI are ideally placed to provide customised financial solutions to the borrowers. “SBI’s wide reach and trust in the market, coupled with our connection with the underserved borrowers, state-of-the-art IT infrastructure, increasing customer reach and underwriting functions will further enhance our distribution network,” he added.
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Dinesh Khara, Chairman, SBI said, “Banks are the backbone of India’s economic growth and as the country pivots to sustainable growth, the banking sector will have to accelerate MSME lending. To improve the credit to the underserved and unserved, we are happy to associate with Capri Global Capital. We believe this collaboration will provide the nimble footedness of NBFC and quality credit to the right set of the population which will further deepen lending to MSMEs through the last mile connect. We are also confident that, in days to come, co-lending can generate employment opportunities through MSMEs which can translate into the country’s GDP growth.”
