Edelweiss Retail Finance Ltd (ERFL) recently announced strengthening its co-lending partnership with Central Bank of India for priority sector lending to micro, small and medium enterprises (MSMEs). MSMEs can now avail of collateral-free business loans up to ₹50 lakh compared to ₹10 lakh earlier. They can also avail of loan against property up to ₹10 crore.
Building on the success of their partnership, the lenders have collaborated to introduce specially designed products with increased loan limits for the MSME segment.
The initiative is aimed towards unlocking higher business value and delivering a digitally enhanced experience to MSME borrowers, Mehernosh Tata, chief executive officer of ERFL, said in a press release.
“This arrangement is a win-win for MSMEs, the bank and us. It will help channelise credit to the priority sector as we step up lending in a credit starved economy,” he said.
Tata said this will expand the reach to underserved markets, enabling priority sector borrowers to get credit at lower costs.
As the country gradually moves out of Covid pandemic, the credit offered through the partnership will provide MSMEs with access to cost effective capital, aiding their economic revival and growth, he added.