msmes: IDBI Bank and U GRO Capital sign a co-loan agreement
The co-loan agreement will aim to provide formal credit to underserved MSMEs at affordable rates. For the same, it will leverage U GRO Capital’s data tripod-driven digital technology platform, which includes GST, Banking & Bureau, in addition to the in-depth industry understanding of the business and the scope of multichannel distribution.
U GRO Capital has built its GRO – Xstream platform, which through
integrates with banks on one side and fintechs, payment platforms, NBFC, NeoBanks, marketplaces and other digital platforms on the other. At the initial stage, banks would co-lend through this platform with loans issued by U GRO Capital’s distribution network, but in the future, other participants on the platform would also have access to capital through this platform.
In a statement, Suresh Khatanhar, Deputy Managing Director, IDBI Bank, together with Rajeev Kumar, Executive Director Agriculture, MSME & Retail Banking, IDBI Bank said: India. U GRO’s platform has the ability to issue loans through its own distribution engine and provide access to other fintechs and NBFCs who, through this integration, can access capital.
“We are seeing an inflection point in MSME lending with the increased utility of the data tripod – ie GST, banking and office. Such collaborations further catalyze financial inclusion efforts for MSMEs, ”Shachindra Nath, Executive Chairman and CEO of U GRO Capital, said in a statement.