TORONTO: SBI, Capri Global tie up for co-lending

TORONTO: State Bank of India (SBI) has
entered into a co-lending agreement with Capri Global Capital (CGCL) — a
non-banking finance company focused on loans to small businesses and affordable
housing.

The co-lending agreement aims to enhance last-mile finance and drive financial
inclusion to MSMEs by offering secured loans between Rs 10 lakh and Rs 1 crore
in tier-2 and -3 markets. “We believe this collaboration will provide the
nimble footedness of an NBFC and quality credit to the right set of population,
which will further deepen lending to MSMEs through the last-mile connect.

We are also confident that, in
days to come, co-lending can generate employment opportunities through MSMEs,
which can translate into the country’s GDP growth,” said SBI chairman Dinesh
Khara.

Earlier, Union Bank of India had
partnered CGCL for a similar co-lending agreement to disburse MSME loans across
more than 100 centres in India. In November 2020, the RBI had issued guidelines
enabling banks to co-lend with finance companies to the priority sector.