Capri Global Capital and Union Bank of India partner to offer MSME loans
Capri Global Capital Limited (CGCL) and Union Bank of India (UBI) have entered into a co-lending agreement to provide loans to micro, small and medium enterprises (MSMEs).
Through the partnership, Capri Global Capital and the public-sector banking group will aim to disburse the loans at more than 100 touchpoints across India. Disbursement of the MSME loans under the arrangement will begin from December 2021.
The agreement has been signed by the parties under the RBI co-lending guidelines for co-lending to the priority sector.
Rajkiran Rai G — MD and CEO of 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.”
According to Capri Global Capital, the collaboration will let MSMEs avail personalized lending solutions at a competitive rate of interest with a substantial reduction in turn-around time.
The non-banking financial company (NBFC) indicated that the co-lending agreement is designed to improve last-mile credit and power financial inclusion to MSMEs by providing secured loans in the range of INR 10 lakhs to INR 100 lakhs. It will include a shared contribution of credit to potential MSME customers of market segments such as Tier II or Tier III markets.
Rajesh Sharma — Capri Global Capital Managing Director 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.”