Karnataka Bank & Clix Capital to offer MSME loans on the Yubi Platform
By Gloria Mathias
This partnership is focused on providing loans to the Indian MSME sector, which is one of the biggest contributors to India’s GDP and employment growth. The agreement is in line with the Reserve Bank of India’s guidelines on co-lending by banks and NBFCs to priority sectors.
The partnership combines Karnataka Bank’s low cost of funds, end-to-end digital capabilities, and expertise to offer credit facilities to this segment, along with Clix Capital’s strong and easy lending tech platform and robust due diligence. The partnership aims to provide seamless financing solutions conveniently and economically in a digital manner, thereby enabling both partners to draw upon each other’s strengths to serve the unserved. The agreement was signed in Bengaluru.
Speaking on the collaboration, Srikrishnan H, Managing Director & CEO of Karnataka Bank said, “Our co-lending partnership with Clix Capital will focus on digital credit to MSMEs with superior product and service offerings through our wide network of branches. By this arrangement, much-needed liquidity at affordable rates for the MSME sector will become a reality. Clix Capital and Karnataka Bank will jointly address the MSME’s requirements, adding impetus to the micro-credit facilities segment, keeping in mind sustainable economic growth for the country.”
Sekhar Rao, Executive Director of Karnataka Bank, stated, “The tie-up shall leverage technology and digital solutions to seamlessly extend a wide range of financial products to the MSME sector.”
Rakesh Kaul, CEO of Clix Capital said, “We at Clix Capital feel elated as we sign this co-lending agreement with Karnataka Bank. With this partnership, we will bring to the table our tech prowess and agility to understand and underwrite segments that largely remain underserved. Our joined forces will harness robust networks to reach a broader audience. Our efforts, along with Karnataka Bank, will empower the MSME to fulfil their aspirations of seeking seamless and affordable business loans to grow.”
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