UGRO Capital and SIDBI Forge Co-Lending Partnership

UGRO Capital, a data-tech non-banking financial company (NBFC), has entered into a co-lending agreement with the Small Industries Development Bank of India (SIDBI) to provide timely and affordable credit to micro, small, and medium enterprises (MSMEs). This initiative aligns with the Reserve Bank of India’s (RBI) co-lending framework, aimed at enhancing priority-sector lending by combining the strengths of banks and NBFCs.

Strategic Collaboration

Prakash Kumar, Deputy Managing Director of SIDBI, emphasized that this partnership aligns with SIDBI’s mission to expand its reach and impact through strategic collaborations. The co-lending arrangement with UGRO Capital is expected to deliver affordable business loans to MSMEs.

Enhanced Credit Delivery

Shachindra Nath, Founder and Managing Director of UGRO Capital, expressed enthusiasm about the partnership, highlighting its potential to improve credit access for MSMEs. The collaboration aims to offer swift and cost-effective financial solutions, underscoring UGRO Capital’s commitment to financial inclusion and MSME growth.

Focus on MSME Growth

SIDBI’s Kumar noted the crucial role of NBFCs in reaching underserved businesses and providing innovative credit delivery models. The co-lending framework is seen as a significant opportunity to channel affordable and timely credit to the smallest MSMEs, leveraging the unique strengths of both SIDBI and UGRO Capital.