Karnataka Bank & Clix Capital partner for co lending
Karnataka Bank and non-banking finance company (NBFC) Clix Capital on Tuesday signed up for a strategic digital co-lending partnership through the platform Yubi Co.Lend.
The partnership is focused on providing loans to the Indian MSME sector which is one of the biggest contributors to India's GDP and employment growth. The agreement is in line with the Reserve Bank of India's guidelines on co-lending by banks and NBFCs to priority sectors.
The partnership combines Karnataka Bank’s low cost of funds, end-to-end digital capabilities and expertise to offer credit facilities to this segment along with Clix Capital's strong & easy lending tech platform and robust due diligence.
The partnership aims to provide seamless financing solutions, conveniently and economically in a digital manner, thereby enabling both the partners to draw upon each other’s strengths to serve the unserved, the bank said in a press statement.
Bank’s MD Srikrishnan H, “Our Co-lending partnership with Clix Capital will focus on digital credit to MSMEs with superior product and service offerings through our wide network of branches. By this arrangement the much-needed liquidity at affordable rates for the MSME sector will be a reality.
Clix Capital and Karnataka Bank will jointly address the MSME's requirements adding impetus to the micro-credit facilities segment keeping in mind the sustainable economic growth for the country".
Bank’s executive director Sekhar Rao added: “the tie-up shall leverage technology and digital solutions to seamlessly extend a wide range of financial products to the MSME sector.”
Clix Capital CEO Rakesh Kaul said, «We at Clix Capital feel elated as we sign this co-lending agreement with Karnataka Bank. With this
