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UGRO Capital & SIDBI form co-lending partnership to support MSMEs

By Gloria Mathias

July 29, 2024

  • co-lending
  • Equity Capital
  • Financial Solutions
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U GRO Capital, Mastercard, Financial Solutions, SMEs, SMBs, Fintech news, Underwriting solutions, Loans, Lending, Women Entrepreneurs, India News, India Fintech News, MSME solutions, Equity Capital, Fintech funding, MyShubhLife, Fintech News, Fintech India, SIDBI, MSME Funding, Co-lending, MSME India, UGRO Capital, a DataTech NBFC and co-lender in the MSME segment, has announced its co-lending partnership with the Small Industries Development Bank of India (SIDBI).

The partnership is established under the Reserve Bank of India’s (RBI) co-lending framework, designed to leverage the strengths of banks and NBFCs to boost priority sector lending.

The co-lending agreement aims to provide faster and more affordable credit to MSMEs. It combines UGRO Capital’s innovative data and technology and extensive on-ground presence with SIDBI’s robust financial resources and strategic vision.

This collaboration will facilitate inclusive growth and socio-economic development across the country by enabling MSMEs to access the credit they need to thrive.

Shri Prakash Kumar, DMD, SIDBI, 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 bottom-of-the-pyramid businesses, especially in credit-deficient geographies. Their adoption of innovative and agile credit delivery models and deep understanding of 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. 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,” added Kumar.

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.”

With this partnership, UGRO Capital will further expand its impact by enhancing its business footprint and increasing its income through collaborative efforts with SIDBI. The partnership underscores the commitment of both organizations to fulfilling priority sector lending obligations and supporting the MSME sector’s growth.

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