Arka Fincap partners with Central Bank of India to boost MSME loans

Arka Fincap Limited, an NBFC and part of the Kirloskar Group, has a co-lending agreement with the Central Bank of India. With this agreement, Arka will be able to offer loans to MSMEs at affordable rates, expand their presence across India, and continue to provide ease and a great experience to their clients. As part of the agreement, Arka would originate and process loan proposals in the MSME sector using collaboratively developed credit parameters and eligibility criteria, while the Central Bank of India will accept 80% of MSME loans on mutually agreed-upon terms. Arka will service the accounts during the loan’s life cycle. 

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Amit Kumar Gupta, Group Chief Financial Officer, Arka Fincap Limited, commented on the partnership, “This partnership aligns with our strategy to expand our retail lending portfolio. It positions us well to explore new growth opportunities and adapt to the ever-evolving financial landscape to change the story of India’s MSME sector to get ahead.”

Navin Saini, Chief Business Officer – Retail & MSME, Arka Fincap Limited, said, “The co-lending partnership with Central Bank of India is a step towards our goal to fill the credit gap of MSMEs, grow our portfolio and be the first-choice NBFC in the business loan segment for the MSME sector. This partnership represents a significant step towards achieving these long-term strategic goals. The competitive rates offered would benefit the MSMEs availing the loan.”

Arka works in four major business segments: MSME and SME loans, corporate lending, real estate and urban infrastructure financing, and syndication. It provides unique financing solutions that assist their customers’ businesses by delivering timely growth money. As of March 31, 2024, Arka had an AUM of INR 5,200 crore and 31 branches across 13 states, with retail AUM accounting for 50% of total AUM. By 2025, it expects to have an AUM of more than INR 7,000 crore and 45 branches.