UGRO Capital, a data-tech non-banking financial company (NBFC) has entered into a co-lending partnership with Small Industries Development Bank of India (SIDBI) for lending to micro, small and medium enterprises (MSMEs).
The partnership is in accordance with the Reserve Bank of India’s (RBI) co-lending framework, designed to leverage the strengths of banks and NBFCs to boost priority-sector lending.
Prakash Kumar, Deputy Managing Director, SIDBI said, “Our collaboration with UGRO Capital aligns perfectly with our mission to extend our reach and impact through strategic partnerships. We are pleased to commence our co-lending arrangement with UGRO Capital, which will help provide affordable business loans to MSMEs.”
Shachindra Nath, Founder and Managing Director of UGRO Capital, said, “We are thrilled to join hands with SIDBI in this strategic co-lending partnership. Our combined efforts will not only enhance the reach of credit to MSMEs but also ensure that it is provided swiftly and at a more affordable cost. This collaboration is a testament to our commitment to driving financial inclusion and supporting the growth of MSMEs across the nation.”
UGRO Capital uses data-driven co-lending to offer bespoke finance solutions to over 78,000 MSMEs in India.
Kumar said SIDBI is committed to fostering the growth of the MSME sector, which is the backbone of India’s economy. “NBFCs play a crucial role in our growth strategy due to their ability to reach the bottom-of-the-pyramid businesses, especially in credit-deficient geographies. Their adoption of innovative and agile credit delivery models and deep understanding of the local ecosystem are invaluable. The co-lending framework offers a significant opportunity to channel affordable and timely credit to the smallest MSMEs in partnership with NBFCs,” he added.