Edelweiss Retail, Central Bank of India expand co-lending partnership
Edelweiss Retail Finance Limited (ERFL) said that it has bolstered its existing co-lending partnership with Central Bank of India (CBoI) by signing a new memorandum of understanding (MoU).
Signed under the Reserve Bank of India’s (RBI) co-lending mode (CLM), the MoU enables the two firms to considerably expand the portfolio of lending products available to micro, small, and medium enterprises (MSMEs).
Mehernosh Tata – CEO of Edelweiss Retail Finance said: “We are excited to partner with Central Bank of India, towards unlocking higher business value and delivering a digitally enhanced experience to MSME borrowers.
“This arrangement is a win-win for MSMEs, Bank and us and will help channelize credit to the priority sector as we step up lending in a credit starved economy.”
Edelweiss Retail, Central Bank of India expand co-lending partnership for MSMEs. Photo courtesy of Free stock photos from www.rupixen.com from Pixabay.
According to Edelweiss Retail Finance, MSMEs can now apply for collateral free business loans up to INR 50 lakh compared to INR 10 lakhs earlier.
Apart from that, MSMEs can avail of loan against property (LAP) loans up to INR 10 crore, said the Edelweiss Group division.
Edelweiss Retail Finance said that its alliance with Central Bank of India utilizes the strength of the two lenders to make it a winning proposition for all stakeholders.
While Edelweiss Retail Finance offers its expertise in loan origination, a digitally powered lending platform along with other servicing capabilities, Central Bank of India brings in its capability of lower cost of funds. This will grow the reach to underserved markets to help priority sector borrowers to get credit at reduced costs, said Edelweiss Retail Finance.
Deepak Mittal – Head, Edelweiss Credit Business Group said: “At a time when we are witnessing the biggest disruption of our lives in the form of a pandemic and businesses across the globe have been badly hit, co-lending can provide the much-needed impetus with greater access to credit. This is also in line with our strategic objective of being asset light and building a high-quality lending book.
“We are happy to partner with a reputed institution like Central Bank of India to provide easier access of credit to MSMEs, who form the backbone of the Indian economy and help drive financial inclusion and democratise access to credit.’’