Bank of Baroda and fintech platform U GRO Capital have launched a Pratham co-lending platform, under which a loan of 1,000 crore will be disbursed to the MSME sector in the country.
The start of loan disbursements under Pratham marks the 114th day of the founding of the Bank of Baroda, U GRO Capital – a technology-driven small business lending platform – said in a statement on Wednesday.
“Pratham, a 1,000 crore co-loan program, will enable MSMEs to benefit from personalized lending solutions at a competitive interest rate with a significant reduction in lead times,” he said.
The loan amount ranges from ₹ 50 lakh to 2.5 crore to be offered at an interest rate starting at 8% with a maximum term of 120 months, he said.
“We believe that forging such partnerships is the way forward and collaborative efforts leveraging the expertise of individual entities are of the utmost importance in taking co-lending to the MSME segment to the next level. ‘This is a significant step forward in the same direction, “said Vikramaditya Singh. Khichi, Executive Director, Bank of Baroda.
Support to MSMEs
The co-loan program echoes the bank’s intention to expand its support to more micro, small and medium enterprises (MSMEs), he said.
The partnership with Bank of Baroda will enable the company to support more MSMEs in the most remote places and help them revive and grow, said Shachindra Nath, Executive Chairman and CEO of U GRO Capital.
Using its technology and industry expertise, U GRO Capital will solve the unresolved credit needs of these small businesses, he said.
Pratham requires minimal documentation for the loan, the company said.
The platform developed by the company, GRO-Xstream, enables faster turnaround time, with in-principle approval issued within 60 minutes, U GRO Capital said.