Edelweiss arm ties up with SBI for MSME co-lending

By: |
Mumbai | Updated: Sep 09, 2019 4:28 PM

For Edelweiss, the partnership with SBI which brings with it low-cost capital would create an alternate model for disbursals, which is asset light and would create a strong revenue model through fee-income.

India largest lender, State Bank of India finance, SBI ECL Finance, NBFC india, Edelweiss Financial Services, micro small and medium enterprises, MSMEs india, business loans rates india, Bank of Baroda, Reserve Bank of India norms, rbi norms, Edelweiss ceoEdelweiss had earlier partnered with public-sector lenders, Central Bank of India and Bank of Baroda to co-lend to MSME customers.

India’s largest lender, State Bank of India (SBI) has partnered with ECL Finance, a subsidiary of non-banking finance company (NBFC) Edelweiss Financial Services, on Thursday for priority sector lending towards micro,small and medium enterprises (MSMEs) for business loans ranging from Rs 3-50 lakh.

Edelweiss had earlier partnered with public-sector lenders, Central Bank of India and Bank of Baroda to co-lend to MSME customers. The partnerships follow after the Reserve Bank of India (RBI) updated norms in August, allowing co-lending by banks and NBFCs towards the MSME, agriculture and housing sector to be considered as priority sector loans.

For Edelweiss, the partnership with SBI which brings with it low-cost capital would create an alternate model for disbursals, which is asset light and would create a strong revenue model through fee-income. “For MSMEs, we believe that revival is possible only by making credit available to this vital contributor of the Indian economy. Edelweiss and SBI are collaborating to make reasonably priced credit accessible for the priority sector segment,’’ said Rashesh Shah, chairman & CEO, Edelweiss Group.

P K Gupta, MD (Digital & Retail Banking), SBI said, “The partnership will boost credit availability to the MSME community, which contributes substantially to the GDP. The wide reach of SBI will give access to cost effective loans to the MSME sector in non-metros.”

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Bitcoin now as big as Coca Cola, Intel as crypto bellwether hits market cap milestone
2Now doctors, CAs, lawyers also can get loan under MSME emergency credit scheme as govt relaxes criteria
3MSME credit guarantee scheme gets a massive boost: Now, individual entrepreneurs can also apply for loans