Union bank

Union Bank of India and Capri Global Capital join forces to lend to MSMEs

Union Bank of India has entered into a co-loan partnership with Capri Global Capital, whereby they will disburse loans to MSMEs.

Capri Global Capital Ltd (CGCL) is a non-bank finance company focused on MSME lending and affordable housing finance segment.

The co-loan agreement aims to improve last mile financing and promote financial inclusion of MSMEs by offering loans guaranteed between Rs 10 lakh and Rs 1 crore, the public sector lender said in a statement.

Through this collaboration, the Union Bank of India and CGCL aim to initially disburse loans to MSMEs at more than 100 contact points across India, he said.

The pact between the two companies is in line with guidelines issued by RBI in November last year on priority sector co-lending.

The collaboration will help MSMEs benefit from personalized lending solutions at competitive interest rates with a significant reduction in turnaround times.

The two entities will result in a joint contribution of credit to potential MSME clients in level II and III markets.

“Union Bank is committed to supporting MSMEs by providing tailor-made financial solutions and accelerating the growth of MSMEs to contribute to the economic development of the country,” said Rajkiran Rai G, MD and CEO of Union Bank of India.

The partnership with CGCL is part of the bank’s strategy to create synergy between the two companies, which will help serve the most deserving and underserved businesses in small towns across the country, he said.

“Through this partnership, the goal is to reach a large part of society by providing simple, practical and effective credit solutions and empowering them to be key contributors to budget growth. Our aim is to support local entrepreneurship which creates value economies ”, said Rajesh Sharma, Managing Director of CGCL.

(Only the title and image of this report may have been reworked by Business Standard staff; the rest of the content is automatically generated from a syndicated feed.)

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