Co-lending partnership to offer ₹1,000 crore loans across 200+ channel touch points pan-India
Mumbai, NFAPost: Bank of Baroda, one of the country’s largest public sector banks, announced a co-lending partnership with U GRO Capital, a BSE listed NBFC engaged in lending to micro, small and medium enterprises (MSME).
The first loan disbursement under this program commenced on the occasion of Bank of Baroda’s 114th Foundation Day on July 20th, 2021. The Bank is amongst the first PSBs to start co-lending in partnership with U GRO.
This programme has been launched under the revised co-lending guidelines wherein U GRO will be co-lending under their product named as “Pratham”, with Bank of Baroda. This will help MSMEs to avail customized lending solutions at a competitive rate of interest with a significant reduction in turn-around time. The loan amount would range from ₹50 lakh to ₹250 lakh to be offered at an interest rate starting from 8% with a maximum tenure of 120 months.
During the inauguration of this co-lending programme, Bank of Baroda Executive Director Vikramaditya Singh Khichi said the bank is glad to have joined hands with U GRO Capital by way of this co-lending programme, which resonates with our intent to extend support to more MSMEs.
“We believe that forging such partnerships is the way forward and collaborative efforts leveraging individual entities’ expertise are of utmost importance to take co-lending to MSME segment to the next level. This is a significant advancement in the same direction,” said Vikramaditya Singh Khichi.
Under the partnership, both Bank of Baroda and U GRO Capital will serve the unserved and underserved MSMEs by leveraging low-cost funds of Bank and higher reach of the NBFC. The programme is accessible across 200+ channel touch points at nine large centres pan-India namely Ahmedabad, Bangalore, Chennai, Delhi, Hyderabad, Jaipur, Kolkata, Mumbai and Pune. For fast delivery of the loan, the bank has established a centralized processing unit at Gandhi Nagar, Gujarat.
Bank of Baroda (“The Bank”) established on 20th July 1908 is a State-owned banking and financial services organisation, headquartered in Vadodara (earlier known as Baroda) in Gujarat, India.
Bank of Baroda is India’s leading public sector bank with a strong domestic presence supported by self- service channels. The Bank’s distribution network includes 8,300+ branches, 11,600+ ATMs, Cash Recyclers supported by self-service channels and over 23,000 Business Correspondents.
The Bank has a significant international presence with a network of 96 branches/offices of subsidiaries, spanning 19 countries. The Bank has wholly owned subsidiaries including BOB Financial Solutions Limited (erstwhile BOB Cards Ltd.), BOB Capital Markets and Baroda Asset Management India Ltd. Bank of Baroda also has joint ventures for life insurance viz.
IndiaFirst Life Insurance Company Limited and India Infradebt Ltd., engaged in infrastructure financing. The Bank owns 98.57% in The Nainital Bank. The Bank has also sponsored three Regional Rural Banks namely Baroda Uttar Pradesh Gramin Bank, Baroda Rajasthan Gramin Bank and Baroda Gujarat Gramin Bank.