Paisalo Digital has inked its co-origination loan agreement with the public lender Bank of Maharashtra on 20 September 2019.
This is the firm’s second Co-origination Agreement with any lender. Prior to this, the company had already entered into a co-origination loan agreement with State Bank of India in April 2019.
The co-origination arrangement will involve a joint involvement of credit by the bank and Paisalo. It shall also include allotment of risks and rewards between bank and Paisalo.
Formerly known as S.E Investments Limited, Paisalo Digital Limited’s provides financial solutions such as term loans and working capital to entrepreneurs.
Pursuant to Reserve Bank of India’s (RBI) guidelines on co-origination of loans by banks and NBFCs, the agreement aims to combine efforts to reach unsevered last-mile borrowers and to ensure timely disbursal of credit.
The co-origination arrangement will entail a joint contribution of credit by the Bank and PAISALO,It shall also involve “sharing of risks and rewards between Bank and PAISALO”.
This agreement is done in adherence to the notification issued by the Reserve Bank of India on September 21, 2018, for Co-origination of loans by Banks and NBFCs regarding lending to priority sector.
Commenting on the initiative, Sunil Agarwal, Managing Director and CEO at PAISALO said, “We at PAISALO have always believed in our mission of conducting business with a social conscience and we intend to continue this thought throughout our journey. We are delighted to associate with Bank of Maharashtra as their co-lending partner, and are thankful to the Bank for their trust.”
Santanu Agarwal, Chief Innovation Officer at PAISALO said, “We at PAISALO, acknowledge the constructive disruption technology has brought in the lending space, a strong technology backbone and foundation is now a solvency factor rather than a standout. PAISALO uses technology as a stepping stone to evolve and grow business effectively and efficiently.”
“With PAISALO focusing on ease and customer-centric growth using technology and digitization becoming the new competitive edge factor, our focus has been to digitally transform the business of PAISALO as well as provide a technological solution so simple, effective and efficient that it makes the customer experience unique, robust and trustworthy. Over the last two years, several initiatives have been undertaken to implement the robust, scalable and trustworthy technological architecture. These initiatives will drive PAISALO efficiencies and provide a seamless and easy experience to the borrowers and fulfill our aim to be AVAILABLE – AWARE – AFFORDABLE.”
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