New Delhi: State-owned Central Bank of India said in a regulatory filing on Thursday that it has entered into a strategic Co-Lending Partnership with India Shelter Finance Corporation Limited (ISFCL), formerly known as Satyaprakash Housing Finance India Limited. The collaboration aims to provide competitive Micro, Small, and Medium Enterprises (MSME) loans, subject to compliance with applicable laws and Reserve Bank of India (RBI) guidelines. This initiative is expected to drive portfolio expansion for both Central Bank of India and ISFCL, benefiting a wider range of borrowers.
Under the co-lending arrangement, ISFCL will originate and process MSME loan proposals according to jointly formulated credit parameters and eligibility criteria. Central Bank of India will then assume 80 percent of the MSME loans on agreed terms. ISFCL will continue to service the loan accounts throughout the loan's life cycle. This collaboration is expected to provide a seamless and customer-centric experience, while enabling both entities to expand their market presence across India.
The partnership between Central Bank of India and ISFCL represents a strategic move to enhance financial inclusion for MSMEs, which play a vital role in India's economic growth. By combining their strengths and resources, the two institutions aim to cater to the financing needs of MSMEs more effectively and efficiently. The co-lending arrangement not only signifies a commitment to supporting small businesses but also reflects the banks' collective efforts to stimulate economic development and contribute to the growth of the MSME sector.
ISFCL, a non-banking financial company registered with the National Housing Bank since September 14, 2010, specialises in offering home loans and loans against properties for business purposes. With an Asset Under Management (AUM) of INR 4360 Crores as of March 31, the company serves over 46,000 clients through its 183 branches across 15 states, including Rajasthan, Maharashtra, Madhya Pradesh, and Gujarat.
(PSU Watch– India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy is now on Google News. Click here to follow. Also, join PSU Watch Channel in your Telegram. You may also follow us on Twitter here and stay updated.)