Mumbai, Sep 20 (GCBusiness) Capital India Finance Limited (CIFL) on Friday announced signing of Memorandum of Understanding with Union Bank of India (UBI) , for Co-origination of loans under the Co-origination guidelines prescribed by Reserve Bank of India.
This partnership enables CIFL to cater to a large section of unserved customers in the small and emerging corporate segment through an efficient blend of economically priced and innovative financing solutions. This arrangement would entail joint contribution of credit at the facility level, by both lending partners.
It is envisaged that the benefit of low-cost funds from Banks and efficient operations of NBFC would be passed on to the borrower through adoption of blended products to suit the requirements of borrowers. The model envisages sharing of risks and reward between the Bank and the NBFC by ensuring appropriate alignment of respective business objectives. This arrangement will promote increase in the credit off-take in respective market and offer timely delivery of the credit at significantly lower cost.
Mr Keshav Porwal, Managing Director – CIFL said, ‘This partnership with the Union Bank will be an enormous platform to provide support to SMEs and MSMEs in line with policy of the Government of India”. Mr Amit Kulshreshtha, Executive Director & Chief Executive Officer – CIFL added “It is a proud moment for CIFL to partner with the Union Bank and jointly support the growth of emerging corporate sector in India”.
Mr Rajkiran Rai G, Managing Director & Chief Executive Officer – Union Bank said, “Co-origination is winwin for the Banks, NBFCs and Borrowers as it gives impetus to work on synergy of low cost of fund of Banks and wider reach of NBFCs. It’s an excellent initiative of Government of India and Reserve Bank of India and with use of technology, Union Bank will be able to provide adequate and timely delivery of credit through Co-origination Model.’