Bank of Maharashtra ties up with LoanTap Credit for co-lending to MSMEs

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February 9, 2021 2:40 AM

LoanTap offers a range of business, vehicle and personal loans to the underserved segment. BoM has a tie-up with fintech company Atyati Technologies, but it was limited to sourcing proposals. With LoanTap, the bank would be getting into faceless sanction and disbursals using mobile app.

To start with, the ticket size would be at around Rs 3 lakh and will be enhanced depending on performance.

Bank of Maharashtra on Monday said it has entered into a co-lending agreement with Pune-based non-banking financial company LoanTap Credit Products for MSME loans.

LoanTap offers a range of business, vehicle and personal loans to the underserved segment. BoM has a tie-up with fintech company Atyati Technologies, but it was limited to sourcing proposals. With LoanTap, the bank would be getting into faceless sanction and disbursals using mobile app.

A S Rajeev, MD & CEO of BoM, said the co-lending system was introduced by the RBI in the wake of the liquidity crisis at NBFCs to enhance the credit flow to the unserved and underserved sector and make available funds to the ultimate beneficiary at an affordable cost.

The co-lending model provides ease of loan sanctions at borrower’s convenience through digital lending platforms, which cover end-to-end loan processing cycle without manual intervention or visiting bank branches.

To start with, the ticket size would be at around Rs 3 lakh and will be enhanced depending on performance.

The co-lending model would enable the bank to meet its priority sector lending target.

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