Central Bank of India, U GRO Capital to disburse MSME loans

Central Bank of India and fintech platform U GRO Capital signed a co-lending agreement to disburse loans worth ₹1,000cr to U GRO users in the next 12 months. Users in various MSME segments under programmes like Pratham, Sanjeevani, Saathi, GRO MSME and machinery financing will benefit from this agreement.

“This co-lending agreement with Central Bank of India will work towards providing formal credit to underserved MSMEs at cheap rates across all product categories of U GRO Capital,” as per an exchange filing by U GRO. The Central Bank of India will use U GRO Capital’s digital technology platform driven by data tripod to GST, banking and bureau besides the organization’s deep sectoral understanding and multi-channel distribution reach for their purpose.

This partnership has enabled by U GRO Capital’s GRO-Xstream platform which integrates banks with several fintechs, payments platforms, NBFCs, marketplaces and other digital platforms. GRO-Xstream also empowers banks and large financial institutions to deepen their distribution reach and service MSMEs across the nation.

U-GRO capital has also formed marquee collaboration with upstream and downstream BFSI partners that are to be integrated on GO-Xstream. Banks will co-lend through this platform with the loans originated by U GRO Capital’s distribution network in initial phase whereas in future other participants on the platform.