SBI on Wednesday said it has signed an agreement with three non-banking finance organization microfinance institutions (NBFC-MFIs) for co-lending to Joint Liability Groups (JLGs). The country’s biggest bank has signed the pact with Vedika Credit Capital Ltd (VCCL), Save Microfinance Pvt Ltd (SMPL), and Paisalo Digital Ltd (PDL).
The understanding is for co-lending to individual individuals from JLGs to undertake agribusiness and allied activities including other income generation activities, a delivery said.
“We accept this drive will financially empower millions of individuals and will expand the bank’s huge distribution network. This will likewise encourage entrepreneurship among the underserved population which thus will give a boost to the Indian economy,” SBI Chairman Dinesh Khara said.
With these associations, the lender would have the option to additional increment its compass in rural and semi-metropolitan regions by offering small-ticket loans, the release said.
It is effectively seeing co-loaning openings with different NBFCs/NBFC-MFIs for financing farm mechanization, warehouse receipt finance, farmer producer organizations (FPOs), and for upgrading credit stream to twofold the farmers/individual’s income, it added.