U GRO Capital, a non-bank financier and state-owned Bank of Baroda, have partnered for co-lending to the micro, small and medium enterprise (MSME) sector. Called ‘Pratham’, loan disbursements under this association have commenced on Bank of Baroda’s 114th Foundation Day on Tuesday and adheres to Reserve Bank of India’s (RBI) revised co-lending guidelines a statement said on We.
Pratham, it said, is a Rs 1,000 crore co-lending program that will allow the MSMEs to avail themselves of customized lending solutions at a competitive interest rate with a significant reduction in turnaround time. The loan amount ranges from Rs 50 lakh to Rs 2.5 crore to be offered at an interest rate starting from 8% with a maximum tenure of 120 months.
Shachindra Nath, executive chairman, and managing director, U GRO Capital said, the value and trust reiterate that the bank places its ability to leverage sectoral expertise and technology to solve the unsolved credit need of the MSMEs.
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“We look forward to nurturing this essential relationship in our bid to support more MSMEs in the remotest locations, to help them revive and grow,” said Nath.
Vikramaditya Singh Khichi, executive director, Bank of Baroda said, he believes that forging such partnerships
The way forward and collaborative efforts leveraging individual entities’ expertise are of utmost importance to co-lending to the MSME segment to the next level.
“This is a significant advancement in the same direction,” said Khichi.