Karnataka Bank, Satin Creditcare join forces to boost micro credit facilities

In a significant move towards enhancing financial inclusivity, Karnataka Bank (KBL), a premier private sector bank, and Satin Creditcare Network Limited (SCNL), a leading Non-Banking Financial Company – Micro Finance Institution (MFI), have announced a strategic co-lending partnership. This alliance aims to provide financial support to Joint Liability Groups (JLG) of economically active women, particularly in rural and semi-urban areas, and to revitalize the micro credit facilities segment in the country.

In alignment with the Reserve Bank of India’s guidelines on co-lending by banks and NBFCs to the priority sector, this arrangement seeks to improve the flow of credit to underserved segments. It leverages the strengths of both entities: Karnataka Bank’s low cost of funds and the end-to-end digital capabilities of KBL and Satin via the Yubi platform. This partnership is expected to facilitate sourcing, servicing, and recovery of small-ticket income generation loans in the priority sector.

Srikrishnan H, Managing Director & CEO of Karnataka Bank, expressed his delight at this strategic collaboration, emphasizing the alignment with the bank’s strategy to grow its advances book in alliance with Fintech partners. He highlighted that the arrangement with Satin will bolster the bank’s micro credit facilities in rural and semi-urban areas and contribute to economic empowerment and financial inclusion.

HP Singh, Chairman-cum-Managing Director of SCNL, also shared his excitement about the collaboration, stating that it represents a significant milestone for SCNL. He noted that by combining their strengths, they aim to uplift women entrepreneurs in rural and semi-urban India, thereby enhancing sustainable economic growth.

Sekhar Rao, Executive Director of Karnataka Bank, remarked that the tie-up will create synergy between the partners and cater to the financial needs of customers across a wide socio-economic spectrum. The agreement was exchanged in Bengaluru, marking the official commencement of this promising collaboration.

This partnership between Karnataka Bank and Satin Creditcare Network Limited is a testament to the evolving landscape of digital co-lending in India. It showcases how strategic alliances in the financial sector can create sustainable pathways for economic empowerment and financial inclusion, especially for women entrepreneurs in less accessible regions.