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State Bank of India (SBI) has signed a Master Agreement with Vedika Credit Capital Ltd (VCCL), Save Microfinance Pvt Ltd (SMPL) and Paisalo Digital Ltd (PDL), for co-lending to individual members of Joint Liability Groups (JLGs) to undertake agriculture and allied activities, including other income generation activities.
These partnerships will enable SBI to further increase its reach in the rural and semi-urban areas of the country, India’s largest bank said in a statement.
SBI is actively looking at co-lending opportunities with multiple NBFCs / NBFC-MFIs for financing activities such as farm mechanisation, warehouse receipt finance, Farmer Producer Organisations (FPOs), for enhancing credit flow to double the farmers’/indivduals’ income, it added.
Dinesh Khara, Chairman said: “Co-lending will be pursued as an important tool to increase the micro finance, MSME and affordable housing portfolio.
“...This will also encourage entrepreneurship among the underserved population which, in-turn, will provide a boost to the Indian economy.”
Khara observed that SBI will continue to work with more NBFCs / NBFC MFIs, in order to reach out to the maximum number of customers staying at far flung areas and provide last mile banking services.
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