Hyderabad/Mumbai, July 21, 2021: Bank of Baroda, one of the country’s largest public sector banks, announced a co-lending partnership with U GRO Capital, a BSE listed NBFC engaged in lending to micro, small and medium enterprises (MSME). The first loan disbursement under this program commenced on the occasion of Bank of Baroda’s 114th Foundation Day on July 20th, 2021. The Bank is amongst the first PSBs to start co-lending in partnership with U GRO.
This program has been launched under the revised co-lending guidelines wherein U GRO will be co-lending under their product named as “Pratham”, with Bank of Baroda. This will help MSMEs to avail customized lending solutions at a competitive rate of interest with a significant reduction in turn-around time. The loan amount would range from ₹50 lakh to ₹250 lakh to be offered at an interest rate starting from 8% with a maximum tenure of 120 months.
During the inauguration of this co-lending program, Shri Vikramaditya Singh Khichi, Executive Director, Bank of Baroda said, “We are glad to have joined hands with U GRO Capital by way of this co-lending program, which resonates with our intent to extend support to more MSMEs. We believe that forging such partnerships is the way forward and collaborative efforts leveraging individual entities’ expertise are of utmost importance to take co-lending to MSME segment to the next level. This is a significant advancement in the same direction.”
Under the partnership, both Bank of Baroda and U GRO Capital will serve the unserved and underserved MSMEs by leveraging low-cost funds of Bank and higher reach of the NBFC. The programme is accessible across 200+ channel touch points at nine large centres pan-India namely Ahmedabad, Bangalore, Chennai, Delhi, Hyderabad, Jaipur, Kolkata, Mumbai and Pune. For fast delivery of the loan, the bank has established a centralized processing unit at Gandhi Nagar, Gujarat.