Digital lending to MSMEs: Private sector lender Tamilnad Mercantile Bank (TMB) has partnered with financial advisory and technology company Jocata to provide digital-first lending solutions to its customer base. TMB said it will leverage Jocata’s low-code Digital Lending Platform (DLP) to drive its digital transformation strategy, providing MSMEs with an end-to-end digital, personalized, and experience-led value proposition.
S. Krishnan, MD & CEO, Tamilnad Mercantile Bank said, “TMB has embarked on a large-scale digital transformation agenda along with business process re-engineering, and one of the key milestones for us will be to bring digital credit products to our MSME customers through technology. By harnessing the potential to scale digital lending with Jocata’s platform, we aim to grow our presence pan India by delivering a seamless and hassle-free borrowing experience for MSMEs.”
Also read: MSME loans: Credit outstanding by banks jumps 12% in FY23; 49% growth in 5 years
According to the bank’s Q1 result, the retail, agri, and MSME segment had around 90 per cent contribution to the bank’s overall advanced portfolio. With the segment, MSMEs constituted around 36 per cent share.
“To cater to the growing MSME segment, the Bank is committed to digitizing its comprehensive MSME Financing Program offering both secured and unsecured products covering funded and non-funded facilities,” the bank said in a statement. It aims to improve the current process and reduce the total time-to-credit for MSMEs through Jocata’s DLP solution.
Also read: MSME loans: Credit outstanding by banks jumps 12% in FY23; 49% growth in 5 years
“We are delighted to partner with the Tamilnad Mercantile Bank in their digital transformation journey. Their commitment to digitizing their operations, coupled with our state-of-the-art digital lending platform, will boost credit access for MSMEs while aiding in rapid loan book growth for the Bank. Jocata’s future-ready technology platform and credit expertise align seamlessly with TMB’s vision of driving digital inclusion and innovation,” said Shailesh Deshpande, Director of Growth, Jocata.
Meanwhile, credit outstanding to the MSME sector by scheduled commercial banks in the financial year 2022-23 increased by 12.3 per cent to Rs 22.6 lakh crore from Rs 20.11 lakh crore in FY22, according to the data shared by Bhanu Pratap Singh Verma, Minister of State in the MSME Ministry in a written reply to a question in the Rajya Sabha recently. The amount outstanding in FY21 and FY20 stood at Rs 17.83 lakh crore and Rs 16.13 lakh crore respectively.