Tie-up with Union Bank for co-lending to MSMEs; agreement with SBI on cards, Capri Global MD Rajesh Sharma says

In today’s edition of News Par Views, Zee Business Managing Editor Anil Singhvi speaks with Rajesh Sharma, Managing Director of Capri Global Capital. It is a non-banking financial company (NBFC) which lends to MSNEs and I also into housing finance. Its affordable housing finance is a bigger vertical. It also has presence in construction financing and indirect lending.  

The company has presence in 8 states with 89 offices and 1900 employees. 

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The company has recently tied-up with the Union Bank of India for co-lending operations.  

Sharma said that the Reserve Bank of India (RBI) recently issued a guideline on the refinancing facility for NBFCs. In this, bank must process 80 per cent of the loan amount while the remaining will be taken up by NBFCs.  

He said that this is a big boost to the financing facility for NBFCs. No NBFC will require loan if this is implemented correctly, he added. The agreement with Union Bank is on similar lines where the bank will provide for 80 per cent of the loan amount given to MSMEs.  

It is a win-win situation for banks and NBFCs as banks have an advantage of lower cost while NBFCs have better collection efficiencies.           

The company will be able to extend loans to MSMEs at competitive rates. Previously, many MSMEs turned away because of higher interest rates, Sharma said.  

With this, Capri Global will not only see a higher volume but will also have a greater reach, the MD said. This is a big strategic move for the company, he said. 

He said that the company will also be doing a similar agreement with the State Bank of India (SBI). No further tie-up will be required to meet the requirements of MSME’s Sharma said, 

As for housing loans, he said that the company could look for a separate tie-up. 

He said that the home loan segment has been receiving significant demand over the past six months. The demand for home loans for ready inventory is very strong. 

He also said that the economy is growing which is putting more income in the hands of the people.  

The company has also registered an all-time high levels of home loan disbursement. Its customers are mainly from low-income groups, which are often overlooked by the banks, he pointed out. He said that there was a big gap in the lower house financing segment.  

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The NBFC loan book is around Rs 3,800 cr and the housing segment accounts for Rs 1400 cr. The company is targeting a growth between 22 and 27 per cent over the next five years, Sharma said. The company has increased the staff and also focusing on technology to improve processes.