Partnership to unlock the potential of Priority Sector Lending (PSL)
FinTech BizNews Service
Mumbai, 1 November, 2023: Mahindra Finance, part of the Mahindra Group and one of India’s leading Non-Banking Finance Company, today announced a strategic co-lending partnership with State Bank of India (SBI), India’s largest public sector bank. The co-lending model is designed to harness the distribution strength of Non-Banking Financial Companies (NBFCs) and the cost-efficient capital of banks, ensuring wider outreach and better interest rates for customers.
The partnership was launched by Ramesh Iyer, VC & MD, Mahindra Finance & the Dy Managing Director, SBI in the presence of Raul Rebello, MD & CEO – Designate, Mahindra Finance & the CGM (SME) from SBI.
Launched on a pan India level, this partnership is expected to offer affordable solutions to Mahindra Finance customers. The interest rates offered under this co-lending arrangement would be determined based on the customer's credit profile, ensuring a personalized and competitive financing experience.
Raul Rebello, MD & CEO- Designate, Mahindra Finance, mentioned, "We are delighted to enter into this strategic co-lending arrangement with State Bank of India, India’s pioneer bank with multi-faceted experience. This collaboration is a step forward in enhancing financial accessibility and inclusivity. As we move forward, our focus remains on fostering innovation, embracing strategic collaborations, and tailoring our services to meet the evolving needs of our customers. Through this partnership we will further our capability to be a responsible financial solution partner to Emerging India”.
With Mahindra Finance strong rural distribution network and expertise in the financial sector and SBI’s competitive capital cost customers will get competitive advantage. The objective is to extend joint financial support to customers thereby enabling credit to the unserved segments of the economy at an affordable cost, marking Mahindra Finance's first co-lending tie-up with a bank. The partnership with SBI emphasizes the long-term commitment of both entities towards empowering the MSME sectors.
Under this agreement, Mahindra Finance will facilitate leads and manage loan servicing while serving as a single point of contact for prospective customers.
