Karnataka Bank partners with Clix Capital for digital co-lending to boost MSME growth in India

In a significant move for India’s financial sector, Karnataka Bank Limited (KBL), a renowned private sector bank, and Clix Capital, an emerging new-age Non-Banking Financial Company (NBFC), have announced a groundbreaking digital co-lending partnership. This collaboration, facilitated through the Yubi Co.lend Platform, aims to revolutionize lending for the Indian Micro, Small, and Medium Enterprises (MSME) sector, a key driver of the country’s GDP and employment.

The partnership strategically aligns Karnataka Bank’s advantages, such as low cost of funds and comprehensive digital capabilities, with Clix Capital’s innovative lending technology and robust due diligence processes. This synergy is expected to offer convenient and economical financing solutions to the MSME sector, addressing the critical need for liquidity and affordable credit.

Speaking at the signing event in Bengaluru, Srikrishnan H, Managing Director & CEO of Karnataka Bank, emphasized the partnership’s commitment to digital credit for MSMEs, offering superior products and services through Karnataka Bank’s extensive branch network. He highlighted the potential of this arrangement in providing affordable liquidity, thereby contributing to sustainable economic growth in India.

Sekhar Rao, Executive Director at Karnataka Bank, further elaborated on leveraging technology and digital solutions to extend a range of financial products seamlessly to the MSME sector.

On the other side, Rakesh Kaul, CEO of Clix Capital, expressed his enthusiasm for the partnership, underscoring Clix Capital’s technical expertise and agility in underwriting segments that have been largely underserved. He noted that the combined efforts of Clix Capital and Karnataka Bank would expand their reach and empower MSMEs with accessible and affordable business loans, fueling their growth aspirations.

This partnership is in line with the Reserve Bank of India’s guidelines on co-lending by banks and NBFCs to priority sectors. It represents a significant step in leveraging fintech innovations to enhance the financial inclusion of MSMEs, ensuring their growth and, by extension, bolstering the Indian economy.

Karnataka Bank Ltd., known as ‘Your Family Bank Across India,’ and Clix Capital’s collaborative effort marks a new era in digital lending, set to transform the landscape of MSME financing in India.