U GRO Capital and IDBI Bank sign a co-loan agreement

U GRO Capital and IDBI Bank sign a co-loan agreement

By Léandra Monteiro

U GRO Capital, a FinTech lending platform for MSMEs, today announced the signing of a co-loan agreement with IDBI Bank, on the occasion of the Bank’s 58th Foundation Day.

The co-loan agreement will aim to provide formal credit to underserved MSMEs at affordable rates. For the same, it will leverage U GRO Capital’s data tripod-driven digital technology platform, which includes GST, Banking & Bureau, in addition to the in-depth industry understanding of the business and the scope of multichannel distribution.

U GRO Capital has built its GRO – Xstream platform, which through APIs integrates with banks on one side and multiple FinTechs, payment platforms, NBFC, NeoBanks, marketplaces and other platforms- digital shapes on the other. At the initial stage, banks would co-lend through this platform with loans issued by U GRO Capital’s distribution network, but in the future, other participants on the platform would also have access to capital through this platform.

Once fully operational, the GRO – Xstream platform would have the power to unleash and democratize MSME credit in India by leveraging the prowess of banks on the liability side and U GRO Capital with its origination partners as well as its underwriting engine on the asset side.

Speaking on the development of this partnership, Shri Suresh Khatanhar, Deputy Managing Director, IDBI Bank, together with Shri Rajeev Kumar, Executive Director Agriculture, MSME and Retail Bank, IDBI Bank said: “The co-loan as concept would change the credit diffusion lending landscape for MSMEs in India, U GRO’s platform has the capacity not only to make loans through its own delivery engine, but also to provide access to several other FinTechs and NBFC which, thanks to this integration, can access capital. IDBI Bank is committed to accelerating credit to MSMEs in India and contributing to the mission of Atmanirbhar Bharat by making credit available to MSMEs at an affordable cost.

Speaking on this alliance, Mr. Shachindra Nath, Executive Chairman and Managing Director of U GRO Capital, said: “We are delighted to sign the MoU for a co-loan agreement with IDBI Bank. We are seeing an inflection point in MSME lending with the increased utility of the data tripod – ie GST, banking and office. Such collaborations further catalyze financial inclusion efforts for Indian MSMEs. This arrangement is a reaffirmation of the bank’s belief in our vision of solving the unresolved credit needs of MSMEs, using industry expertise and technology. This partnership would not only benefit U GRO, but would ultimately benefit all other FinTechs and NBFCs that are integrated into our GRO – Xstream platform. We look forward to nurturing this relationship to support more MSMEs to enable their recovery and growth. “