Mumbai January 06, 2019: ICICI Bank today announced that it has signed a Memorandum of Understanding (MoU) with Small Business FinCredit India Pvt. Ltd. (SBFC), a systemically important Non-Banking Finance Company for entrepreneurs, to jointly provide credit to MSMEs. The partnership has been forged under the aegis of RBI’s circular dated September 21, 2018, that permits banks to engage with a Non-Banking Financial Company (NBFC) to co-originate loans for the creation of priority sector assets.
The agreement enables MSMEs to obtain loans upto Rs. 1 crore for a tenure of 15 years. This is a first-of-its-kind lending programme in the country between a bank and an NBFC. Under this arrangement, ICICI Bank will co-originate loan against property with SBFC at a mutually agreed ratio. The flow of funds from ICICI Bank will help customers to aid their businesses in a seamless manner.
Talking about the partnership, Mr. Ravi Narayanan, Head – Secured Assets, ICICI Bank said, “ICICI Bank has played a key role in the development of infrastructure in India over the last two decades. In keeping with this legacy, we are delighted to join hands with SBFC to bring forth seamless credit as priority sector loans to MSMEs to strengthen them financially and assist the growth of the business. This is a first of its kind lending arrangement between a bank and an NBFC that will enable a seamless flow of credit to MSMEs. With this initiative, we aim to support the entrepreneurial aspirations of customers who can contribute to the infrastructure growth story of the country.”
Talking about the partnership, Mr. Aseem Dhru, MD & CEO, SBFC Pvt Ltd. said, “We at SBFC are delighted and humbled to work with an institution like ICICI Bank and being the first NBFC – Bank co-origination enabled by the September RBI circular. This combines the balance sheet strength and superior credit screening experience of the bank with our ability to reach out to the underserved businesses across the country’s smaller towns. This is a partnership of nimbleness and reaches with strength and experience. Through this we will enable credit delivery to the micro- enterprises using technology, reach and deliver credit at the right price point that replaces market borrowings or trade credit and improves the cash flows of these businesses.”
Your email address will not be published. Required fields are marked *
Save my name, email, and website in this browser for the next time I comment.
Sign me up for the newsletter!
Notify me of follow-up comments by email.
Notify me of new posts by email.
This Festive season light your days with The Deltin, Daman
Kashmakash – Hungama Play’s upcoming anthology show on moderncrimes in India
Starbucks X – Launch Of Limited-Edition Merchandise With Renowned International Designer, Rachel Zoe
Indian Chemical Council flags concerns regarding need to safeguard Indian Chemical industry with product-specific ‘Rules of Origin’ under the RCEP negotiations
FADA releases September’19 Vehicle Registration Data
2014 The Global Indian New Network (TGINN)