Central Bank enters co-lending partnership with Ugro Capital to offer loans to MSME borrowers

Central Bank of India has entered into a strategic Co-lending Partnership with Ugro Capital Ltd., to offer loans to MSME borrowers under priority sector, subject to compliance with the applicable law(s) including the applicable guidelines issued by the Reserve Bank of India (RBl).

The participation by both entities in this co-lending arrangement will result in greater expansion of portfolio by Central Bank of India & Ugro Capital Ltd. Ugro Capital Ltd is an RBl regulated non-banking finance company with a pan India branch network and has a track record of good customer acquisition.

Under this arrangement, Ugro Capital Ltd. will originate and process loans to MSME borrowers as per jointly formulated credit parameters & eligibility criteria and the Central Bank of India will take into its book 80 per cent of loans under mutually agreed terms. Ugro Capital Ltd. will service the loan account throughout the life cycle of the loan. This Co-lending arrangement is expected to help both the entities to offer convenient experience & customer delight to their customers as well as help expand their reach across India.

Shares of the Central Bank of India closed at Rs 21 per share on BSE on Tuesday as compared to the previous close of Rs. 21.15. Shares of Ugro Capital Ltd closed at Rs 198.05 on BSE as compared to the previous close of Rs 196.20.