Karnataka Bank and Paisalo Digital Limited, a non-deposit taking Non-Banking Financial Company (NBFC) registered with the Reserve Bank of India, recently entered into a co-lending agreement to provide financial support to the low-income segment and to boost the country’s Micro and Small Enterprises (MSEs).
In the statement, Mahabaleshwara MS, Managing Director and Chief Executive Officer of the bank, said, “Co-lending model is one of the innovative avenues of lending to priority sector. This tie-up shall create a dynamic synergy between the two sets of lenders — Paisalo Digital Ltd and Karnataka Bank. As per RBI’s co-lending norms, this arrangement will help us in extending credit to the priority sector and promoting financial inclusion by providing necessary financial support to micro-entrepreneurs.”
Santanu Agarwal, Deputy Managing Director of Paisalo Digital Ltd, said, “Paisalo sees a huge opportunity and is well positioned to capitalise on the ₹8-lakh crore market of small-ticket loans for its 365 million under-banked and under-serviced population.”
He added, “Karnataka Bank and Paisalo co-lending product is a big step towards Paisalo’s goal of creating the most competitive and seamless banking solution for India’s bottom of pyramid population.”