A new partnership to serve the MSME sector
Karnataka Bank, a leading private sector bank, and Clix Capital, a fast-growing new-age NBFC, have announced a strategic digital co-lending partnership through YubiCo.Lend platform. The partnership is aimed at providing loans to the Indian MSME sector, which is one of the biggest contributors to India’s GDP and employment growth.
The partnership is in line with the RBI’s guidelines on co-lending by banks and NBFCs to priority sectors. The partnership leverages Karnataka Bank’s low cost of funds, end-to-end digital capabilities and expertise, along with Clix Capital’s strong and easy lending tech platform and robust due diligence.
The partnership aims to provide seamless financing solutions, conveniently and economically in a digital manner, thereby enabling both the partners to draw upon each other’s strengths to serve the unserved. The agreement was signed in Bengaluru on Tuesday.
Benefits for the customers
The customers of both Karnataka Bank and Clix Capital will benefit from this partnership, as they will have access to a wider range of products and services, faster turnaround time, lower interest rates, and flexible repayment options.
The customers will also be able to avail loans through a simple online process, without any physical visits or paperwork. The loans will be disbursed within 24 hours of approval, subject to verification and eligibility.
The co-lending model will also help in reducing the credit risk for both the partners, as they will share the loan portfolio according to a pre-agreed ratio. The co-lending model will also ensure compliance with the regulatory norms and enhance transparency in the lending process.
A win-win situation for both the partners
The co-lending partnership is a win-win situation for both Karnataka Bank and Clix Capital, as they will be able to leverage their respective strengths and synergies to expand their customer base, diversify their product portfolio, increase their market share, and improve their profitability.
Karnataka Bank has a strong presence across 22 states and 2 union territories, with 913 branches, 1188 ATMs & Cash recyclers, and 587 e-lobbies. The bank serves over 11 million customers, with a focus on retail banking, MSME banking, corporate banking, and agri banking.
Clix Capital is one of India’s fastest growing new-age NBFCs, with a diversified portfolio of products and services, including personal loans, business loans, home loans, education loans, consumer durable loans, vehicle loans, and healthcare finance. The NBFC has a pan-India presence, with over 100 branches and 4000+ channel partners.
YubiCo.Lend is an innovative loan marketplace that is reshaping India’s co-lending landscape by efficiently connecting banks and financial institutions on a unified platform. The platform offers end-to-end digital solutions for origination, underwriting, servicing, collection, and reporting of loans.
A milestone for the co-lending industry
The co-lending partnership between Karnataka Bank and Clix Capital is a milestone for the co-lending industry in India, as it demonstrates the potential of digital platforms like YubiCo.Lend to facilitate collaboration between banks and NBFCs.
The co-lending industry is expected to grow rapidly in the coming years, as more banks and NBFCs join hands to offer innovative and affordable credit solutions to various segments of customers, especially the underserved ones.
The co-lending industry is also expected to contribute significantly to the economic growth and development of the country, by providing easy access to finance to the MSME sector, which is the backbone of India’s economy.