SBI signs pact with three NBFC MFIs for Co-lending to JLGs
Bank signs agreement with Vedika Credit Capital, Save Microfinance and Paisalo Digital to offer financing solutions under Co-lendin
Mumbai – September, 2021: Country’s largest lender State Bank of India (SBI) has signed a Master Agreement with Vedika Credit Capital Ltd (VCCL), Save Microfinance Pvt Ltd (SMPL) and Paisalo Digital Ltd (PDL), for co-lending to individual members of Joint Liability Groups (JLG) to undertake agriculture and allied activities including other income generation activities.
With these partnerships, SBI would be able to further increase its reach in the rural and semi-urban areas of the country offering small ticket loans. SBI is actively looking at Co-lending opportunities with multiple NBFCs / NBFC-MFIs for financing Farm Mechanisation, Warehouse Receipt Finance, Farmer Producer Organisations (FPOs), etc., for enhancing credit flow to double the farmers’/individuals’ income.
Shri Dinesh Khara, Chairman said “Co-lending will be pursued as an important tool to increase the micro finance, MSME and affordable housing portfolio. As a first step, we are pleased to announce such arrangement with VCCL, SMPL and PDL for lending to JLGs. We believe this initiative will financially empower millions of people and will augment bank’s vast distribution Network. This will also encourage entrepreneurship among the underserved population which in-turn will provide a boost to the Indian economy. We will continue to work with more NBFCs / NBFC MFIs, in order to reach out to maximum customers staying at far flung areas and provide last mile banking services.”
RBI had issued guidelines on Co-lending scheme for banks and NBFCs / NBFC-MFIs for Priority Sector Lending to improve the flow of credit to unserved and underserved sectors of economy and to make funds available to borrowers at an affordable cost. The co-lending model aims to give the borrower the best interest rate and better reach.
About State Bank of India:State Bank of India is the largest commercial bank in terms of assets, deposits, branches, customers, and employees. It is also the largest mortgage lender in the country which has so far fulfilled the home buying dreams of 30 lakh Indian families. The home loan portfolio of the bank has crossed the milestone of Rs. 5 lakh crore. As on June 30, 2021, the bank has a deposit base of over Rs. 37 lakh crore with CASA ratio of nearly 46% and advances of more than Rs. 27 lakh crore. SBI commands a market share of 34.77% and about 31.11% in home loans and auto loans segment respectively. SBI has the largest network of 22,224 branches and 63,906 ATM / CDM in India with 71,705 BC outlets. The number of customers using internet banking and mobile banking stand roughly at 91 million and 20 million respectively. The integrated digital and lifestyle platform by SBI – YONO has close to 36 million registered users, which witnesses approximately 11 million logins per day. Accelerating the digital agenda, around 1.5 lakh accounts have been opened through YONO in the quarter ended June 2021. In terms of digital lending, the bank disbursed personal loans of around Rs. 2430 crore through the YONO mobile app in the same quarter. On social media platforms, SBI has the highest number of followers on Facebook and Twitter amongst all banks worldwide.