Central Bank of India has announced a co-lending partnership with Moneywise Financial Services Private Limited to provide micro, small, and medium enterprises (MSME) loans at a competitive rate.

The partnership is subject to compliance with relevant laws as well as the guidelines that are issued by the Reserve Bank of India (RBI).

Participation by both organizations in the colending arrangement will lead to the expansion of portfolios by Central Bank of India and Moneywise Financial Services.

Moneywise Financial Services is an RBI licensed nonbanking financial institution that focuses exclusively on MSME lending.

As a part of its commitment to the central government and RBI’s vision of financial inclusion of the masses and last mile credit access, Moneywise Financial Services aspires to be an innovator in the SME lending sector by making the most of technologies as the main facilitator for providing inexpensive business (SME) loans with more flexibility to its customers.

The assets under management of Moneywise Financial Services as of December 2022 were INR 800 crores.

Under the terms of the agreement, Moneywise Financial Services will initiate and process MSME loan proposals in the MSME Sector as per jointly established credit criteria and eligibility parameters.

Central Bank of India will take 80% of MSME loans into its books under the terms of the agreement, while Moneywise Financial Services will maintain the loan account for the entire time period that the loan will last.

This co-Lending agreement is anticipated to assist both parties to provide convenience to customers as well as extending their reach throughout India.

  Banking industry news, Central Bank of India, India, Moneywise Financial Services, Reserve Bank of India