Bank of Baroda and Paisalo Digital Limited, a non-deposit taking NBFC registered with the Reserve Bank of India, today announced that they have signed a co-lending loan agreement.
This partnership will provide access to small-ticket finance for income generation to the country’s micro, small and medium enterprises (MSMEs) and women entrepreneurs.
In line with the Reserve Bank of India’s circular on co-lending by banks and NBFCs to the priority sector to improve the flow of credit to unserved and underserved segments, Bank of Baroda and Paisalo’s co-lending arrangement will leverage the Bank’s low cost of funds & credit assessment expertise combined with Paisalo’s rule engine-based loan origination and underwriting capabilities, with the help of an end-to-end digital platform for sourcing, servicing and recovery of small-ticket income generation priority sector loans, it said in a press statement.
Santanu Agarwal, Deputy CEO, Paisalo Digital Limited said, “The Bank of Baroda-Paisalo Co-Lending Product is a big step towards Paisalo’s goal of creating the most competitive and seamless banking solution for India's Bottom of the Pyramid population.”
Dhrubashish Bhattacharya, Head – MSME Business, Bank of Baroda said, “This agreement with Paisalo enables Bank of Baroda to tap and serve a substantial market segment – small businesses, women-led enterprises, agri/ allied agri ventures – which hitherto have found it difficult to access formal sources of financing. As per RBI’s co-lending norms, this arrangement between Bank of Baroda and Paisalo will help us in extending credit to the priority sector and promoting financial inclusion.”
