ICICI Bank and Small Business FinCredit have signed a Memorandum of Understanding (MoU) with Small Business FinCredit India Pvt Ltd (SBFC) to jointly provide credit to micro, small and medium enterprises (MSMEs).
This is the first-of-its-kind programme between a bank and an NBFC in India. Under the pact, eligible MSMEs can get loans up to Rs 1 crore for a tenure of 15 years. The agreement enables ICICI Bank to co-originate loan against property with SBFC at a mutually agreed ratio.
Ravi Narayanan, Head (Secured Assets), ICICI Bank, said, "We are delighted to join hands with SBFC to bring forth seamless credit as priority sector loans to MSMEs to strengthen them financially and assist the growth of the business. This is a first of its kind lending arrangement between a bank and a NBFC that will enable a seamless flow of credit to MSMEs. With this initiative, we aim to support the entrepreneurial aspirations of customers who can contribute to the infrastructure growth story of the country."
Aseem Dhru, MD & CEO, SBFC Pvt Ltd, stated, "We at SBFC are delighted and humbled to work with an institution like ICICI Bank and being the first NBFC – Bank co-origination enabled by the September RBI circular. This combines the balance sheet strength and superior credit screening experience of the bank with our ability to reach out to the underserved businesses across the country’s smaller towns. This is a partnership of nimbleness and reach with strength and experience. Through this, we will enable credit delivery to the micro- enterprises using technology, reach and deliver credit at the right price point that replaces market borrowings or trade credit and improve the cash flows of these businesses."
