UGRO Capital, a non-banking financial company (NBFC) in India has entered into a co-lending agreement with the Small Industries Development Bank of India (Sidbi) to enhance the accessibility and affordability of credit for micro, small, and medium-sized enterprises (MSMEs) across the country.
The initiative is part of the Reserve Bank of India's (RBI) co-lending framework, which aims to facilitate collaboration between banks and NBFCs to improve credit delivery to underserved sectors. This new partnership is expected to amplify their efforts, allowing for a more extensive reach and better service delivery to small businesses
Prakash Kumar, Deputy Managing Director of Sidbi, emphasised that this partnership is aligned with its mission to promote the growth of MSMEs. He noted that NBFCs play a crucial role in reaching businesses that are often overlooked by traditional banking channels. This partnership will enhance SIDBI's ability to support these enterprises, which are vital to India's economic landscape.
Shachindra Nath, Founder and Managing Director of UGRO Capital, expressed confidence that the partnership will significantly improve the reach and affordability of credit for MSMEs. He highlighted UGRO Capital's commitment to financial inclusion, stating that the collaboration will enable them to extend their impact further into the MSME sector.
