Mumbai: U GRO Capital, a non-bank financier, and Baroda’s state-owned bank have teamed up to co-lend to the micro, small and medium-sized enterprises (MSMEs) sector.
Called “Pratham,” loan disbursements under this association began on Tuesday the 114th day of the founding of the Bank of Baroda and adhere to the revised co-lending guidelines of the Reserve Bank of India (RBI), said. a press release on We.
Pratham, he said, is a ₹1,000 crore co-loan program that will allow MSMEs to benefit from personalized loan solutions at competitive interest rates with a significant reduction in lead times. The loan amount varies from ₹50 lakh to ₹2.5 crore to be offered at an interest rate starting at 8% with a maximum term of 120 months.
Shachindra Nath, Executive Chairman and Managing Director of U GRO Capital, said this is a reiteration of the value and trust the bank places in its ability to leverage expertise and technology sectors to address the unresolved credit need of MSMEs.
“We look forward to nurturing this essential relationship in our offer to support more MSMEs in the most remote places, to help them revive and grow,” said Nath.
Vikramaditya Singh Khichi, Executive Director of Bank of Baroda, said he believes that building such partnerships is the way forward and that collaborative efforts leveraging the expertise of individual entities are of the utmost importance. importance to take co-lending to the next level MSME segment.
“It’s a significant step in the same direction,” Khichi said.
According to the statement, the Pratham program requires minimal documentation while providing funding to MSMEs and allows for a faster turnaround time, with in-principle approval issued within 60 minutes.
“A wide range of MSMEs, including the newly added wholesale and retail traders in the priority sector, can benefit from credit through this program. The program is accessible to MSMEs through more than 200 channel contact points spread over nine sites, ”the statement said.
Never miss a story! Stay connected and informed with Mint. Download our app now !!