SBI, Capri Global Capital together to boost MSME lending in India

The State Bank of India (SBI) has been constantly working towards associating with various NBFCs to create multiple co-lending opportunities for the financial empowerment of the MSMEs. This initiative undertaken by the largest public sector bank in the country will provide further impetus to financial inclusion in the country. Recently, SBI has entered into a co-lending arrangement with Capri Global Capital Limited (CGCL).

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The SBI has entered this collaboration aiming to boost MSME lending in the country. As per the press release from SBI, this association will offer strategic and customized financing solutions to the underserved MSMEs of the country in line with Reserve Bank of India (RBI) guidelines.

While commenting on the collaboration between SBI and CGCL, Dinesh Khara, Chairman, SBI said, "To improve the credit to the underserved and unserved, we are happy to associate with Capri Global Capital. We believe this collaboration will provide the nimble footedness of NBFC and quality credit to the right set of the 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.”

Speaking on the development, Mr. Rajesh Sharma, Managing Director, Capri Global Capital Ltd said, “We are delighted to partner with India’s largest bank. Our combined synergies are ideally placed to provide customized financial solutions to the borrowers. SBI’s wide reach and trust in the market, coupled with our connection with the underserved borrowers, state-of-the-art IT infrastructure, increasing customer reach, and underwriting functions will further enhance our distribution network. This collaboration will create win-win business opportunities for all stakeholders. To the borrowers, it would mean more choice to avail innovative offerings, including attractive loan rates and faster approvals.”

It has to be noted that the RBI had issued guidelines on the co-lending scheme for banks and NBFCs for Priority Sector Lending to improve the flow of credit to unserved and underserved sectors of the economy and to make funds available to borrowers at an affordable cost. The co-lending model aims to give the borrower the best interest rate and better reach.

The MOU was exchanged in the presence of Dinesh Khara, Chairman, SBI; C.S. Setty, MD (Retail & Digital Banking), SBI; S. Salee, DMD (SME, Agri, and FI), SBI; and Rajesh Sharma, Managing Director, Capri Global Capital Limited.