“Maiden Partnership for both Capri Global Capital Ltd. and Union Bank of India for Co-Lending to MSMEs”
~Co-lending partnership to disburse MSME loans across 100+ touch points pan-India~
Capri Global Capital Limited (CGCL), a leading NBFC focused on MSMEs, and affordable housing finance segment has entered into a Co-Lending agreement with the Union Bank of India (UBI), one of the country’s largest public-sector banks, to offer MSMEs loans. Through this collaboration, CGCL and UBI aim to disburse MSME loans across 100+ touch points pan-India. The loan disbursement under this arrangement would commence from December 2021.
This agreement is signed under the Co-Lending guidelines issued by RBI in November 2020 for Co-Lending to the Priority Sector. The collaboration will be helping MSMEs to avail customized lending solutions at a competitive rate of interest with a significant reduction in turn-around time. The Co-Lending agreement aims to enhance last-mile credit and drive financial inclusion to MSMEs by offering secured loans between ₹10 lakhs to ₹100 lakhs. The Co-Lending arrangement will entail joint contribution of credit to the prospective MSME customers in Tier II and Tier III markets.
Speaking on the development, Mr. Rajesh Sharma, Managing Director, Capri Global Capital Limited, said, “We are glad to partner with Union Bank of India. Our association with the centenarian bank has always proved to be a positive reinforcement of our aspirations and values. Their accommodative business solutions and customized services have proved to be a boon for our business model. Through this partnership, the aim is to reach out to a large section of society by offering easy, convenient, and efficient credit solutions and empowering them to be key contributors to fiscal growth. Our focus is to support the grassroots entrepreneurship that creates economic value.”
Shri Rajkiran Rai G, MD and CEO, Union Bank of India said, “The partnership with CGCL is part of UBI’s strategy to support the MSMEs by providing tailor-made financial solutions and accelerating the growth of MSMEs to contribute to the country’s economic development. Over the years, CGCL has built the required experience, knowledge and technology to handle small ticket collateral-based loans to businesses. There is a lot of synergy and philosophical match between both the companies that will help us serve the most deserving and underserviced businesses in smaller towns across the country.”
The partnership was signed in the presence of Shri. Rajkiran Rai G. - Managing Director & CEO, UBI and Mr. Rajesh Sharma – Managing Director, Capri Global Capital Limited. Under this joint effort, the benefit of low-cost funds from UBI and efficient operations of CGCL would be passed on to the borrowers.
About Capri Global Capital Limited
Capri Global Capital Limited (CGCL) is a Non-Banking Financial Company (NBFC) listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). The Company operates in two major verticals – MSME Loans and Affordable Housing Finance – through its strong network of 100+ branches spread across 10 states & Union territories, backed by a strong and committed workforce of 2450+ employees in the country. CGCL addresses the capital needs of MSMEs and empowers them by offering tailor-made business loans for various business needs. Capri Global Housing Finance Limited is a subsidiary of CGCL that operates in the affordable housing finance space by offering home loans to Lower and Middle-Income families. The company is a key contributor to the PM’s vision of “Housing for All” by 2022.
About Union Bank of India
Union Bank of India is the fifth largest public sector bank in the country. The Bank is a listed entity and the Government of India holds 83.50 percent in Bank’s total share capital. The Bank, having its headquarters at Mumbai (India), was registered on November 11, 1919 as a limited company. Recently, Andhra Bank and Corporation Bank were amalgamated into Union Bank of India with effect from 01.04.2020. Today, it has a network of 9300+ domestic branches, 11800+ ATMs, 8216 BC Points serving over 120 million customers with 77000+ employees .The Bank’s total business as of 31st March 2021 stood at Rs.15,77,489 crore, comprising Rs. 9,23,805 crore of deposits and Rs. 6,53,684 crore of advances. The Bank also has 3 branches overseas at Hong Kong, Dubai International Financial Centre (UAE) & Sydney (Australia); 1 representative office in Abu Dhabi (UAE); 1 banking subsidiary at London (UK); 1 banking joint venture in Malaysia; 4 para-banking subsidiaries (domestic); 3 joint ventures(including 2 in life insurance business) and 1 associate - Chaitanya Godavari Gramin Bank. Union Bank of India is the first large public sector bank in the country to have implemented 100% core banking solution. The Bank has received several awards and recognition for its prowess in technology, digital banking, financial inclusion, MSME and development of human resources.