Ambit Finvest Private Limited (Ambit Finvest), Non-Deposit taking Non-Banking Financial Company (NBFC) of the Ambit Group has inked a co-lending agreement with Union Bank of India (UBI) for lending to Micro, Small and Medium Enterprise (MSME) customers.
Lal Singh, CGM, MSME, Union Bank said: “The partnership with Ambit Finvest Pvt Ltd. is part of UBI’s strategy to bring synergy between both the companies that will help us serve the most deserving and underserviced businesses. This initiative is a part of Union Bank’s commitment to support the MSMEs by providing tailor-made financial solutions and accelerating the growth of MSMEs to contribute to the country’s economic development.”
Sanjay Dhoka, COO & CFO, Ambit Finvest said that Ambit Finvest is delighted to be partnering with Union Bank of India, in increasing the reach of credit to service the needs of the MSME segment. With this alliance, Ambit Finvest and Union Bank of India aim to facilitate speedy disbursal of credit across different geographies.
This partnership will ensure underwriting for originations, positively impacting the creditworthiness of MSMEs, in 11 states that are currently covered by Ambit Finvest. Many MSMEs face challenges of higher interest rates or are excluded from access to banking services. Through this innovative model of lending, MSMEs will now enjoy a blended lower rate of interest, translating into a lower cost of funds, helping them deploy capital more effectively in their business.
Sanjay Dhoka further added that the co-lending partnership with a large organisation like Union Bank of India will help Ambit Finvest further expand its footprint in the MSME segment.