Karnataka Bank (KBL), a leading Private Sector Bank and Clix Capital, one of India’s fastest growing new-age NBFCs, have entered into a strategic digital co-lending partnership through Yubi Co.lend Platform. This partnership is focused on providing loans to the Indian MSME sector which is one of the biggest contributors to India’s GDP and employment growth. The agreement is in line with the Reserve Bank of India’s guidelines on co-lending by banks and NBFCs to priority sectors.
The collaboration combines Karnataka Bank’s cheap cost of funds, end-to-end digital capabilities, and expertise in providing credit to this area with Clix Capital’s powerful & easy lending tech platform and comprehensive due diligence. The alliance intends to deliver seamless finance solutions in an accessible and cost-effective digital format, allowing both parties to draw on each other’s capabilities to help the underserved. The agreement was inked today in Bengaluru.
Speaking on the collaboration, Srikrishnan H, Managing Director & CEO, Karnataka Bank said, “Our Co-lending partnership with Clix Capital will focus on digital credit to MSMEs with superior product and service offerings through our wide network of branches. By this arrangement, the much-needed liquidity at affordable rates for the MSME sector will be a reality. Clix Capital and Karnataka Bank will jointly address the MSME’s requirements adding impetus to the micro-credit facilities segment keeping in mind the sustainable economic growth for the country”.
Commenting on the co-lending agreement with Karnataka Bank, Rakesh Kaul, CEO, Clix Capital said, “We at Clix Capital feel elated as we sign this co-lending agreement with Karnataka Bank. With this partnership, we will bring to the table our tech prowess, and agility to understand and underwrite segments that largely remain underserved. Our joined forces will together harness the robust networks to reach a broader audience. Our efforts along with Karnataka Bank will empower the MSME to fulfil their aspirations of seeking seamless and affordable business loans to grow.”
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