U GRO Capital, a tech-enabled lender to small businesses, has signed a loan co-origination partnership with State Bank of India (SBI) to offer credit at a competitive rate of interest.

Further, the collaboration will use GRO Capital’s technology platform ‘GRO- Xstream’ to provide in-principle loan approval within 60 minutes, the company said in a statement.

“The synergy will help in increasing access to credit for SMEs and MSMEs across the country. Our proprietary co-lending technology platform ‘GRO-Xstream’ and deep sectoral expertise combined with SBI’s vast experience in lending and large capital base will increase availability of liquidity to growth-focused SMEs both in metros and tier-level cities,” said Abhijit Ghosh, Whole Time Director and CEO of U GRO Capital.

The agreement was signed by Jayanta Deb Majumdar, General Manager, SBI, and Shachindra Nath, Executive Chairman of U GRO Capital, in Mumbai.

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U GRO Capital is focusing on entering into co-origination partnerships with larger banks or NBFCs. Loan co-origination is a key component in the company’s three-pronged liability strategy involving balance sheet lending, an off-balance sheet model including assignments and securitization to create a truly hybrid lending model.

U GRO Capital had entered into its first loan co-origination partnership with Bank of Baroda in October this year.

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U GRO Capital had earlier raised about $140 million from a diversified set of global private equity investors such as NewQuest, ADV Partners, PAG and Samena Capital and public market investors such as Abakkus, PNB Metlife and multiple Indian family offices.

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