Private lender ICICI Bank has joined hands with Small Business FinCredit to jointly offer loans worth Rs 1 crore to the Small and Medium Enterprises (SMEs).
The bank on Friday inked a memorandum of understanding with Small Business FinCredit India Pvt Ltd (SBFC).
The partnership has commenced under the aegis of the Reserve Bank of India’s (RBI) circular dated September 21, 2018, that allows lenders to connect with a Non-Banking Financial Company (NBFC) to co-originate loans for the formation of priority sector assets, said the bank.
The bank said that this is the first-of-its-kind programme run by lender and an NBFC which ensures adding the loans of up to Rs 1 crore is for tenure of 15 years per customer.
Under the pact, the bank will co-originate loan against property with SBFC at a mutually settled ratio. The flow of funds from the lender will assist the customers in support their businesses in a hassle free manner.
“This is a first of its kind lending arrangement… With this initiative, we aim to support the entrepreneurial aspirations of customers who can contribute to the infrastructure growth story of the country,” said Ravi Narayanan, Head – Secured Assets, ICICI Bank.
