Comments
Karnataka Bank and Paisalo Digital Ltd, a non-deposit-taking NBFC registered with the Reserve Bank of India, have entered into a co-lending arrangement to provide financial support to the small income segment and to give impetus to the micro and small enterprise segment of the country.
A media statement by the bank said that the arrangement will leverage Karnataka Bank’s low cost of funds and its end-to-end digital capabilities and Paisalo to help the sourcing, servicing and recovery of small-ticket priority sector loans.
In the statement, Mahabaleshwara MS, Managing Director and Chief Executive Officer of the bank, said, “Co-lending model is one of the innovative avenues of lending to priority sector. This tie-up shall create a dynamic synergy between the two sets of lenders — Paisalo Digital Ltd and Karnataka Bank. As per RBI’s co-lending norms, this arrangement will help us in extending credit to the priority sector and promoting financial inclusion by providing necessary financial support to micro-entrepreneurs.”
Santanu Agarwal, Deputy Managing Director of Paisalo Digital Ltd, said, “Paisalo sees a huge opportunity and is well positioned to capitalise on the ₹8-lakh crore market of small-ticket loans for its 365 million under-banked and under-serviced population.”
He added, “Karnataka Bank and Paisalo co-lending product is a big step towards Paisalo’s goal of creating the most competitive and seamless banking solution for India’s bottom of pyramid population.”
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.