The SBI announced on Wednesday that it had signed an agreement with three non-bank finance companies and microfinance institutions (NBFC-IMF) for a co-loan to joint responsibility groups (JLG).
The country’s largest lender signed the pact with Vedika Credit Capital Ltd (VCCL), Save Microfinance Pvt Ltd (SMPL) and Paisalo Digital Ltd (PDL).
The agreement is for co-lending individual JLG members to undertake agricultural and related activities, including other income-generating activities, according to a statement.
“We believe this initiative will financially empower millions of people and increase the bank’s vast distribution network. It will also encourage entrepreneurship among the underserved population, which in turn will boost the Indian economy,” said the SBI Chairman Dinesh Khara.
Through these partnerships, the lender would be able to further expand its reach into rural and semi-urban areas by offering low-cost loans, the statement said.
He is actively seeking co-loan opportunities with several NBFC / NBFC-MFIs to finance agricultural mechanization, the financing of warehouse receipts, agricultural producer organizations (OPF) and to improve credit flows to double the incomes of farmers. farmers / individuals, he added.
The RBI had issued guidelines on co-loan program for banks and NBFC / NBFC-IMF for lending to priority sectors to improve the flow of credit to unserved and underserved areas and to bring funds available to borrowers at an affordable cost.
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