U GRO Capital, a publicly traded MSME lending fintech platform, today entered into a co-lending partnership with State Bank of India (SBI), India’s largest bank, to provide credit to micro, small and medium-sized enterprises (MSME). Through this collaboration, SBI and U GRO aim to disburse up to 500 crore by March 2022.
The agreement was signed in line with the alternative option of the revised Reserve Bank of India co-lending guidelines, which involves the post-disbursement takeover of the bank’s share of the loan on a back-to-back basis. back. This deal will leverage SBI’s prowess on the liability side and the origination capabilities and distinctive underwriting engine of U GRO Capital on the asset side.
The deal will expand credit products under U GRO’s Sanjeevani program, offering loans up to â¹ 3 crore, at a competitive interest rate. U GRO Capital had launched ‘Sanjeevani’ as a solution to provide credit to the pandemic-affected MSME sector as an end-to-end digital lending program in June 2020 and had disbursed over 750 crore, as of October 31, 2021.
The partnership was hosted on U GRO Capital’s GRO-xStream platform, which, via APIs, integrates with banks on one side and multiple FinTechs, payment platforms, NBFC, NeoBanks, places market and other digital platforms on the other. U GRO has integrated more than 15 FinTech / NBFC partners on the asset side and banks on the liability side, via this GRO-xStream.
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With this partnership, U GRO has established its distinguished position in the rapidly evolving co-lending ecosystem where it is the first NBFC that has been accepted as a co-lending partner with Bank of Baroda, IDBI Bank and now SBI .
Dinesh Khara, Chairman of State Bank of India, said, âWe are pleased to have partnered with U GRO Capital as part of the co-loan program. This collaboration will further improve our distribution network as we aim to expand our credit reach to more MSMEs. Such partnerships align with our commitment to accelerate efficient and affordable credit to MSMEs in India and contribute to the country’s financial inclusion imperative towards building an Atmanirbhar Bharat.