U GRO Capital and IDBI Bank have signed a co-lending agreement towards providing formal credit to underserved MSMEs at affordable rates. For the same, the bank will leverage U GRO Capital’s digital technology platform driven by a Data Tripod, in addition to the NBFC’s deep sectoral understanding, and multi-channel distribution reach.
U GRO Capital has been building its GRO – Xstream platform, which through APIs integrates with banks, multiple FinTechs, payments platforms, NBFCs, Neobanks, market places, and other digital platforms.
Suresh Khatanhar, Deputy Managing Director, IDBI Bank, jointly with Rajeev Kumar, Executive Director Agriculture, MSME and Retail Banking, IDBI Bank, stated, “Co–lending as a concept will change the lending landscape of credit dissemination for MSMEs in India. U GRO’s platform has the capability of not only originating loans through its own distribution engine but also giving access to multiple other FinTechs and NBFCs, who through this integration can get access to capital.”
Shachindra Nath, Executive Chairman and Managing Director, U GRO Capital said, “We are witnessing an inflection point in MSME lending with the enhanced utility of the Data Tripod which comprises GST, Banking and Bureau. Collaborations will further catalyse the financial inclusion efforts for Indian MSMEs.”