SBI signs pact with U Gro Capital for Co-lending to underserved MSMEs

Mumbai, Nov 17: Country’s largest bank, State Bank of India (SBI), has entered into a Co-Lending agreement with U GRO Capital to offer strategic financing solutions to the unserved and underserved MSMEs of the country in line with RBI guidelines. SBI is actively looking at co-lending opportunities with multiple NBFCs through their products for financing the MSMEs and to enhance last mile connect. This initiative will financially empower MSMEs and further drive financial inclusion in the country. Dinesh Khara, Chairman, SBI said, “We are glad to have joined hands with U GRO Capital under the co-lending program. This collaboration will further enhance our distribution network, as we aim to extend our credit reach to more MSMEs. Such partnerships align with our commitment to accelerate effective and affordable credit to MSMEs in India and contribute to the country’s financial inclusion imperative towards building an Atmanirbhar Bharat.” The partnership was signed in the presence of Dinesh Khara, Chairman, SBI, C.S. Setty, MD (Retail & Digital Banking), SBI and Shachindra Nath, Executive Chairman and MD, U GRO Capital. RBI had issued guidelines on co-lending scheme for banks and NBFCs for Priority Sector Lending to improve the flow of credit to unserved and underserved sectors of economy and to make funds available to borrowers at an affordable cost. The co-lending model aims to give the borrower the best interest rate and better reach.