U GRO Capital, an MSME lending fintech platform listed on the NSE and BSE, stated on Wednesday that it has entered in-to a co-financing arrangement with the Central Bank of India. In the next 12 months, the two companies hope to disburse up to Rs. 1000 crores to U GRO Capital’s various MSME segments through initiatives such as Pratham, Sanjeevani, Saathi, GRO MSME, and Machinery finance.
Under the terms of the co-lending agreement, U GRO Capital will provide formal financing to underserved MSMEs at affordable rates across all product categories and Central Bank will use U GRO’s digital technology platform.
U GRO Capital’s GRO–Xstream platform enabled the partnership, which interfaces with Banks on the one hand and different FinTechs, Payments Platforms, NBFCs, NeoBanks, Market Places, and other digital platforms on the other via APIs.
Rajeev Puri, Executive Director of the Central Bank of India, commented on the progress of the relationship, stating, “We believe this initiative will financially empower large section of MSME borrowers. We believe, Co–lending as a concept is picking up pace and would change the lending landscape of credit dissemination for MSMEs in India. This agreement is in line with the Central Bank of India’s objective to accelerate the credit to MSMEs in India and contribute towards the mission of Atmanirbhar Bharat by making credit available to MSMEs at an affordable cost.”
Shachindra Nath, Executive Chairman and Managing Director of U GRO Capital, stated on the partnership: “We are delighted to sign the MoU for a co-lending arrangement with the Central Bank of India. We are witnessing an inflection point in MSME lending with the enhanced utility of the Data Tripod – i.e. GST, Banking and Bureau. For the first time UGRO Capital is signing a Co – Lending arrangement for all the programs which include Pratham, Sanjeevani, Saathi, GRO MSME and Machinery Finance.