Private sector lender Axis Bank and Shriram Housing Finance Limited (SHFL) on Thursday announced a strategic partnership under the co-lending model through the Yubi Co.Lend platform.
In the partnership, both the lenders will offer secured MSME (Micro, Small and Medium Enterprises) loans and home loans to the middle and low-income segment borrowers based in rural and semi-urban regions.
The partnership will leverage the financial expertise of Axis Bank, and loan processing technology of Shriram Housing Finance Ltd to assess the credit profile of borrowers and provide them loans at competitive interest rates through a network of 123 branches of SHFL.
The partnership will cater to customers who are either new to credit or untapped by larger institutions and build a secured loan book. The collaboration will leverage the tech platform, Yubi to process loans seamlessly as per the co-lending guidelines.
“The partnership with SHFL is aligned with the Bank’s Bharat Banking mission of driving financial inclusion in the rural and semi-urban regions in a seamless digital manner. This alliance will improve our reach, strengthen our presence in the MSME and affordable home loans segment, and augment the priority sector lending portfolio of the Bank. We are excited to grow the partnership using our digital co-lending platform and offer a superior customer experience,” said Munish Sharda, Group Executive & Head – Bharat Banking, Axis Bank
“The Axis-SHFL partnership is a powerful combination. Together we will expand our reach and serve a much larger customer base for Housing and secured MSME loans, specifically targeting borrowers at the bottom of the pyramid. Through the co-lending model, we intend to channelize credit to the priority sector as we step up lending in a credit-starved economy. The co-lending model has the potential to catalyse the resurgence of India’s MSME sector and transform the priority sector and today’s announcement is yet another step in this direction,” said Ravi Subramanian MD & CEO, Shriram Housing Finance Ltd.
The collaboration between two lenders aims to cater to customers in the unorganized sector, including self-employed or salaried borrowers who have limited access to credit due to the lack of sufficient income proofs.
On Wednesday, the company’s scrip ended 1.75 per cent up at ₹847 on BSE.
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