New Delhi: State-owned Central Bank of India on Monday "entered into a strategic Co-Lending Partnership with M/s Moneywise Financial Services Private Limited to offer MSME Loans at competitive rates, subject to compliance with the applicable law(s) including the applicable guidelines issued by Reserve Bank of India (RBI)," said a regulatory filing.
"The participation by both the entities in this Co-Lending arrangement will result in greater expansion of portfolio by Central Bank of India and M/s Moneywise Financial Services Private Limited. M/s Moneywise Financial Services Private Limited (MFSPL) is an RBI regulated non-banking financial company focused on MSME Lending. Living the central government and RBI’s vision of financial inclusion of the masses and last mile availability of credit, MFSPL aspires to be a pioneer in SME Lending space, by optimum usage of Technologies as the key enabler offering affordable business (SME) Loans with greater ease to its end customers," the filing added.
"MFSPL's AUM as on Dec 2022 stood at INR 800 crores approximately. Under the arrangement, M/s Moneywise Financial Services Private Limited will originate and process MSME Loan proposals under MSME Sector as per jointly formulated credit parameters and eligibility criteria and Central Bank of India will take into its books 80 percent of the MSME Loans under mutually agreed terms. M/s Moneywise Financial Services Private Limited will service the loan account throughout the life cycle of the loan. The Co-Lending arrangement is expected to help both the entities to offer convenient experience and customer delight to their customers as well as help expand their reach across India," the filing stated.
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