MSME lending fintech platform, U GRO Capital, signed a co-lending agreement with the Central Bank of India. Under the agreement two entities aim to disburse Rs. 1,000 crore loans to U GRO Capital's varied MSME segments under its programs like Pratham, Sanjeevani, Saathi, GRO MSME and Machinery financing, in the next twelve months.

The Central Bank of India will utilize U GRO Capital’s digital technology platform driven by Data Tripod of GST, banking and bureau in addition to the company’s deep sectorial understanding and multi-channel distribution to reach the purpose. The contract with Central Bank of India aims to work towards providing formal credit to undeserved MSMEs at affordable rates across all product categories of U GRO Capital.

The collaboration enabled by U GRO Capital’s GRO-Xstream platform incorporates banks with multiple fintechs, payment platforms, NBFCs, marketplaces and other digital platforms. GRO-Xsteam also empowers banking sectors and financial organizations to deepen their strength in distribution reach and service MSMEs across India.

U-GRO platform formed marquee partnerships with upstream and downstream BFSI partners that are to be integrated on GRO-XStream. Banks have co-lend through the platform with loans originated by U GRO Capital’s distribution network in the initial stage, and will continue the same in the future with other participants on the platform. The GRO-XStream platform will utilize the banks’ abilities on the liability side along with the origination partners and backing engine on the efforts to democratize MSME credit in India.

Rajeev Puri, Executive Director, Central Bank of India says, “we believe this initiative will financially empower large section of MSME borrowers. We believe, co-lending as a concept is picking up pace and would change the lending landscape of credit dissemination for MSMEs in India. This agreement in India and contribute towards the mission of Atmanirbhar Bharat by making credit available to MSMEs at an affordable cost.”