Union bank

Link with Union Bank for MSME co-loan; agreement with SBI on cards, said Rajesh Sharma, CEO of Capri Global

In today’s edition of News By Views, Zee Business Editor-in-Chief Anil Singhvi speaks with Rajesh Sharma, Managing Director of Capri Global Capital. It is a non-bank financial company (NBFC) which lends to the MSNE and I also to the financing of housing. Its affordable housing funding is a bigger vertical. It is also present in construction financing and indirect loans.

The company is present in 8 states with 89 offices and 1900 employees.

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The company recently partnered with Union Bank of India for co-lending operations.

Sharma said the Reserve Bank of India (RBI) recently issued a guideline on the NBFC refinancing facility. In this case, the bank has to process 80 percent of the loan amount while the rest will be taken care of by the NBFCs.

He said it was a big boost to the funding facility for NBFCs. No NBFC will need a loan if this is implemented correctly, he added. The agreement with Union Bank goes in the same direction that the bank will provide 80 percent of the loan amount given to MSMEs.

This is a win-win situation for banks and NBFCs as banks have the advantage of lower cost while NBFCs have better collection efficiency.

The company will be able to provide loans to MSMEs at competitive rates. Previously, many MSMEs refused because of the higher interest rates, Sharma said.

With this, Capri Global will not only see higher volume but also have greater reach, the managing director said. This is an important strategic step for the company, he said.

He said the company will also enter into a similar deal with the State Bank of India (SBI). No further reconciliation will be necessary to meet Sharma’s demands from MSME, said:

Regarding home loans, he said the company may be looking for a separate reconciliation.

He said the home loan segment has received significant demand over the past six months. The demand for home loan inventory loans is very high.

He also said that the economy is growing which puts more income in the hands of the people.

The company also recorded a record level of mortgage disbursements. His clients are mainly from low-income groups, often overlooked by banks, he said. He said there was a big gap in the lower house funding segment.

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NBFC’s loan portfolio is around Rs 3,800 cr and the housing segment represents Rs 1,400 cr. The company is targeting growth of between 22% and 27% over the next five years, Sharma said. The company has increased staff and is also focusing on technology to improve processes.