Ambit Finvest, Central Bank forge co-lending ties for MSMEs

Ambit Group’s non-banking financial company (NBFC) Ambit Finvest has forged a co-lending tie-up with the Central Bank of India to provide loans to micro, small, and medium enterprises.

Sanjay Agarwal, CEO, Ambit Finvest expressed his enthusiasm by stating, “We are delighted to join hands with the Central Bank of India to expand its outreach and cater to the credit needs of MSMEs.”

“This strategic alliance empowers Ambit Finvest to extend its services to a broader geographical spectrum, offering competitive interest rates on business loans to numerous MSMEs that previously faced challenges accessing banking services due to higher interest rates,” he said.

Moreover, Agarwal is hopeful that collaborating with a pioneering institution like the Central Bank of India will enable Ambit Finvest to further expand its footprints in the MSME segment.

RBI’s Co-lending framework embodies a collaborative approach that harnesses the complementary strengths of banks and NBFCs to bolster lending in the priority sector.

Co-lending presents a mutually beneficial strategy whereby smaller NBFCs, often operating in remote areas and contributing significantly to growth and socio-economic development, receive support to expand their business reach and income by leveraging the bank’s robust balance sheet. Meanwhile, banks, through risk and reward sharing can broaden their geographical reach and fulfil their Priority Sector Lending obligations.

The ultimate beneficiaries of such partnerships are MSMEs, who can gain access to credit more swiftly and at more affordable rates.