Executives from Karnataka Bank and Satin CreditCare Network at the co-lending agreement signing on Friday in Bengaluru.
Credit: Special Arrangement
Private sector lender Karnataka Bank on Friday announced a co-lending partnership with micro-finance institution Satin CreditCare Network to provide credit facilities to Joint Liability Groups (JLG) of economically active women in rural and semi urban areas.
The agreement is focused on disbursing small-ticket priority sector loans that stimulate income generation in line with the Reserve Bank of India’s directive on co-lending by banks and NBFCs to priority sectors to improve the flow of credit to unserved and underserved segments.
Through the arrangement, both financial companies hope to facilitate sourcing, servicing and recovery of small-ticket loans by leveraging low cost of funds provided by Karnataka Bank and increased digital capabilities provided by fintech platform Yubi.
“This is part of our stated strategy to collaborate and grow our advances book in alliance with fintech partners and controlling the in-flow with the bank’s credit standards. Our arrangement with Satin will improve our presence in the area of micro credit facilities in rural and semi-urban areas,” said Srikrishnan H, managing director and chief executive officer at Karnataka Bank.
“Digital co-lending partnerships covering multiple credit areas will be pursued by the bank to create a sustainable focus on economic empowerment and financial inclusion,” he added.