Dhanvarsha Finvest partners with CBOI to offer gold loans for MSMEs

Dhanvarsha Finvest Limited has entered into a co-lending partnership with the Central Bank of India (CBOI) for offering customized lending to micro, small, and medium enterprises (MSME) gold loan customers.

As per the terms of the co-lending partnership, Dhanvarsha Finvest has agreed to scale up the business up to INR 10 billion with the Central Bank of India.

The Indian fintech company said that the partnership will materially strengthen its assets under management (AUM), capital efficiency, and vision of meeting the financial requirements of MSMEs via credit solutions that are affordable, timely, and sustainable.

Dhanvarsha Finvest’s role in the partnership is to originate, service, and collect on MSME gold loans under a joint credit and eligibility policy, which will be decided between the two entities.

See also  Engineers India, CSIR-CSIO to commercialize Earthquake Warning System

Central Bank of India will take 80% of the loans in its own books while Dhanvarsha Finvest will retain 20%.

Dhanvarsha Finvest partners with Central Bank of India to offer gold loans for MSMEs
Dhanvarsha Finvest partners with Central Bank of India to offer gold loans for MSMEs. Photo courtesy of Free-Photos from Pixabay.

Dhanvarsha Finvest said that a broad variety of MSMEs including the recently added retail and wholesale traders under priority sector can avail credit via the partnership.

Rohanjeet Singh Juneja and Karan Desai — Joint Managing Directors at Dhanvarsha Finvest said: “Dhanvarsha was formed with a vision to empower with financial access the unserved and underserved entrepreneurs of India. There is tremendous demand for credit in the MSME segment which is still relatively unaddressed in India’s financial ecosystem.

See also  Adani Welspun says gas discovery offshore Mumbai has potential commercial interest

“Dhanvarsha, a tech enabled finance company with a strong credit and origination engine, is proud to partner with Central Bank of India, one of the largest Public Sector Banks in India, to support the Government’s mission in providing capital and much needed confidence to the MSME sector.”

The Indian fintech company has a network of over 300 financial inclusion stores, 125 partner branches, and 25 experiential centers.

See also  Rs 103cr at stake! Systematix Corporate Services’ bold move to reshape its future

Earlier this year, Dhanvarsha Finvest secured a capital infusion of INR 658.3 million led by Aviator Emerging Market Fund (AEMF).


Discover more from Business-News-Today.com

Subscribe to get the latest posts sent to your email.