U GRO Capital on Wednesday announced the commencement of a co-lending collaboration with Bank of Baroda, targeting micro, small, and medium enterprises (MSME). The loan disbursements, labelled ‘Pratham,’ began on the occasion of Bank of Baroda’s 114th Foundation Day. The programme was introduced under the amended co-lending criteria of the Reserve Bank of India.
Pratham, a Rs. 1000 crore co-lending programme, will enable MSMEs to access tailored credit solutions at a competitive rate of interest and with a significantly shorter turnaround time. The loan amount varies from 50 lakh to 2.5 crore, with an interest rate starting at 8% and a maximum repayment period of 120 months.
Shachindra Nath, Executive Chairman and Managing Director of U GRO Capital, commented on the relationship, “It gives us immense pleasure to launch one of our most significant programs ‘Pratham’ and sign the co-lending agreement with Bank of Baroda under RBI’s revised guidelines. It is a reiteration of the value and trust that the bank places on our ability to leverage sectoral expertise and technology to solve the unsolved credit need of the MSMEs. We look forward to nurturing this essential relationship in our bid to support more MSMEs in the remotest locations, to help them revive and grow.”
Bank of Baroda Executive Director Vikramaditya Singh Khichi remarked, “We are glad to have joined hands with U GRO Capital by way of this co-lending program, which resonates with our intent to extend support to more MSMEs. We believe that forging such partnerships is the way forward and collaborative efforts leveraging individual entities’ expertise are of utmost importance to take co-lending to MSME segment to the next level. This is a significant advancement in the same direction.”
When offering finance to MSMEs, the Pratham programme requires minimal documentation. With an in-principal permission provided in 60 minutes, U GRO Capital’s unique designed platform GRO-Xstream enables for a speedier turnaround time. This programme is available to a wide spectrum of MSMEs, including the newly added Wholesale and Retail Traders within the Priority Sector. MSMEs in Ahmedabad, Bangalore, Chennai, Delhi, Hyderabad, Jaipur, Kolkata, Mumbai and Pune can access the programme through 200+ channel touch points spread across nine cities.