Axis Bank and Piramal Finance have formed a strategic partnership to launch a co-lending business aimed at providing loans to underserved segments in India. This collaboration targets middle and low-income borrowers who have limited access to traditional banking services, particularly in rural and semi-urban areas. The partnership seeks to enhance financial inclusion by reaching borrowers who are new to credit or have not been previously served by larger financial institutions.
The partnership leverages the strengths of both entities, with Axis Bank contributing its expertise in credit assessment and Piramal Finance offering advanced loan processing technology for efficient application handling. This combined effort is geared towards serving customers in the informal sector, such as self-employed individuals and salaried workers with insufficient income documentation. The collaboration aims to bridge the credit gap for MSMEs and home loan seekers, thus supporting financial growth and accessibility in less urbanized regions.
Together, Axis Bank and Piramal Finance are poised to work towards closing the credit gap in India by providing loans at affordable interest rates through Piramal Finance’s extensive network of 490 outlets.
