Pune (Maharashtra) [India], Feb 12 (ANI): Digital lender LoanTap has entered into a strategic partnership with Bank of Maharashtra for extending loans to micro, small and medium enterprises (MSMEs).
Under the co-lending model, LoanTap will bear the 20 per cent exposure while the rest 80 per cent will be borne by the bank.
Co-origination of loans as a scheme was introduced by the Reserve Bank of India (RBI) in 2018 to make non-banking finance companies and other banking institutions work closely with an increased focus on providing services like risk assessment to each other.
The co-lending model introduced as a revision in November 2020 provides greater flexibility to lenders and aims to enhance credit for the unserved and underserved sectors.
Satyam Kumar, CEO and Co-Founder of LoanTap, said the initiative is in line with the objective of increasing financial inclusion and awareness in the country.
"Through this programme, we aim to digitise and simplify credit access for MSMEs -- the building blocks of India's self-reliant economy," he said in a statement. "These loans are designed to serve the business needs of MSMEs, supporting their plans to grow and expand business."
S Rajeev, Managing Director and CEO of Bank of Maharashtra, said the co-lending programme will help provide quick, digitised credit to the unserved and underserved sectors. It will ensure funds reach the ultimate beneficiary at an affordable cost. (ANI)