ALERT to the MSME sector! Rs 1,000 crore loan – Bank of Baroda, U GRO Capital join forces to launch ‘Pratham’ co-lending platform

The loan amount ranges from Rs 50 lakh to Rs 2.5 crore to be offered at an interest rate starting from 8% with a maximum tenor of 120 months, he said.

PTI • Updated: July 22, 2021 2:43 p.m.

Bank of Baroda and fintech platform U GRO Capital have launched a Pratham co-lending platform, under which a loan of Rs 1,000 crore will be disbursed to the country’s MSME sector.

The start of loan disbursements under Pratham marks the 114th day of the founding of Bank of Baroda, U GRO Capital – a tech-focused small business lending platform – said in a statement on Wednesday.

Watch the Zee Business live stream below:

“Pratham, a Rs 1,000 crore co-loan scheme, will enable MSMEs to benefit from customized loan solutions at a competitive interest rate with a significant reduction in lead time, he said.

The loan amount ranges from Rs 50 lakh to Rs 2.5 crore to be offered at an interest rate starting from 8% with a maximum tenor of 120 months, he said.

“We believe that building such partnerships is the way forward and that collaborative efforts leveraging the expertise of individual entities are of utmost importance in taking co-lending to the MSME segment to the next level. This is a significant step in the same direction,” said Vikramaditya Singh. Khichi, Executive Director, Bank of Baroda.

The co-loan program resonates with the bank’s intention to expand its support to more micro, small and medium-sized enterprises (MSMEs), he said.

The partnership with Bank of Baroda will enable the company to support more MSMEs in the most remote places and help them revive and grow, said Shachindra Nath, Executive Chairman and Managing Director of U GRO Capital.

Using technology and industry expertise, U GRO Capital will solve the unsolved credit needs of these small businesses, he said.

Pratham requires minimal documentation for the loan, the company said.

The company-developed platform, GRO-Xstream, allows for faster turnaround, with approval in principle issued within 60 minutes, U GRO Capital said.

MSMEs, including wholesalers and retailers recently added to the priority sector, can avail credit at over 200 touchpoints in cities like Delhi, Jaipur, Ahmedabad, Pune, Mumbai, Bengaluru, Chennai, Hyderabad and Kolkata. PT

Bernadine J. Perkins