U GRO Capital, a listed MSME lending fintech platform, today entered into a co-lending partnership with State Bank of India (SBI), India’s largest bank, to provide credit to the micro, small and medium enterprises (MSME). Through this collaboration, SBI and U GRO aim to disburse upto ₹ 500 crores by March 2022.
The agreement has been inked in sync with the alternative option of Reserve Bank of India’s revised co-lending guidelines, which involves post disbursal takeover of bank’s share in the loan on a back-to-back basis. This arrangement will leverage SBI’s prowess on the liability side and U GRO Capital’s origination and distinctive underwriting engine capabilities on the assets side.
The arrangement will extend credit products under U GRO’s Sanjeevaniprogram, offering loans upto ₹ 3 crore, at competitive rate of interest. U GRO Capital had launched ‘Sanjeevani’ as a solution to provide credit to pandemic impacted MSME sector as an end-to-end digital lending program in June 2020 and has disbursed over ₹ 750 crores, as of October 31, 2021.
The partnership has been hosted on U GRO Capital’s GRO–xStream platform, which through APIs integrates with Banks on one side and with multiple FinTechs, Payments Platforms, NBFCs, NeoBanks, Market places and other digital platforms on the other. U GRO has on-boarded more than 15 FinTech / NBFC partners on asset side and Banks on liability side, via this GRO–xStream.
With this partnership, U GRO has established its distinguished position in the fast-evolving co-lending ecosystem where it is the first NBFC which have been accepted as Co-Lending partner with Bank of Baroda, IDBI Bank and now SBI.
Dinesh Khara, Chairman, State Bank of India said, “We are glad to have joined hands with U GRO Capital under the co-lending program. This collaboration will further enhance our distribution network, as we aim to extend our credit reach to more MSMEs. Such partnerships align with our commitment to accelerate effective and affordable credit to MSMEs in India and contribute to the country’s financial inclusion imperative towards building an Atmanirbhar Bharat.”