Karnataka Bank and Paisalo Digital Ltd, a non-deposit-taking NBFC registered with the Reserve Bank of India, have entered into a co-lending arrangement to provide financial support to the small income segment and to give impetus to the micro and small enterprise segment of the country.
The arrangement will leverage Karnataka Bank’s low cost of funds and its end-to-end digital capabilities and Paisalo to help the sourcing, servicing, and recovery of small-ticket priority sector loans.
Karnataka Bank Inked Co-lending pact with Paisalo Digital – Key Points
- Mahabaleshwara MS, Managing Director, and Chief Executive Officer of the bank informed that the Co-lending model is one of the innovative avenues of lending to the priority sector.
- This tie-up shall create a dynamic synergy between the two sets of lenders — Paisalo Digital Ltd and Karnataka Bank.
- As per RBI’s co-lending norms, this arrangement will help in extending credit to the priority sector and promoting financial inclusion by providing necessary financial support to micro-entrepreneurs.”
- Santanu Agarwal, Deputy Managing Director of Paisalo Digital Ltd, informed that Paisalo sees a huge opportunity and is well positioned to capitalize on the ₹8-lakh crore market of small-ticket loans for its 365 million under-banked and under-serviced population.
- The gap between India and the rest is bridging very fast and is driving growth for the country informed Sanjay Bembalkar, CIO-Equities, Union AMC.
- Karnataka Bank and Paisalo’s 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.
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