Maharashtra Bank, MAS Financial Services enter co-lending pact for MSME borrowers

Bank of Maharashtra will tap MSME borrowers through a co-lending arrangement with MAS Financial Services.

The bank has entered into a strategic co-lending partnership with MAS Financial Services to offer loans to MSME borrowers under priority sector, Bank of Maharashtra said on Tuesday.

This partnership will result in greater expansion of portfolio by the bank and the non-banking finance company (NBFC).

Under the co-lending arrangement, MAS Financial Services will originate and process the loans to MSME borrowers as per jointly formulated credit parameters and eligibility criteria and the state-owned lender will take into its book loans under mutually agreed terms, Bank of Maharashtra said in a release.

"This co-lending arrangement is expected to help both the entities to offer convenient experience...As well as help expand their reach across India," it said further.