ICICI
Bank and Small Business FinCredit India to jointly finance credit to MSMEs
· Offers
loan against property to MSMEs worth upto Rs. 1 crore
· First-of-its-kind
programme by a bank and a NBFC
Chennai:
ICICI Bank today announced that it has signed a Memorandum of
Understanding (MoU) with Small Business FinCredit India Pvt. Ltd. (SBFC), a
systemically important Non-Banking Finance Company for entrepreneurs, to
jointly provide credit to MSMEs. The partnership has been forged under the
aegis of RBI’s circular dated September 21, 2018 that permits banks to engage
with a Non-Banking Financial Company (NBFC) to co-originate
loans for the creation of priority sector assets.
The
agreement enables MSMEs to obtain loans upto Rs. 1 crore for
a tenure of 15 years. This is a first-of-its-kind lending
programme in the country between a bank and a NBFC. Under this arrangement,
ICICI Bank will co-originate loan against property with SBFC at a mutually
agreed ratio. The flow of funds from ICICI Bank will help customers to aid
their businesses in a seamless manner.
Talking
about the partnership, Mr. Ravi Narayanan, Head - Secured Assets, ICICI Bank said,
“ICICI Bank has played a key role in the development of infrastructure in India
over the last two decades. In keeping with this legacy, 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 business. This is
a first of its kind lending arrangement between a bank and a NBFC that will
enable 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.”
Talking about the
partnership, Mr.
Aseem Dhru, MD & CEO, SBFC Pvt Ltd. said, “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.”
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About ICICI Bank: ICICI Bank Ltd
(NYSE:IBN) is a leading private sector bank in India. The Bank’s consolidated
total assets stood at US$ 160.5 billion at June 30, 2018. ICICI Bank's subsidiaries
include India's leading private sector insurance, asset management and
securities brokerage companies, and among the country’s largest private equity
firms. It is present across 17 countries, including India.
About SBFC: Small Business
FinCredit India Pvt Ltd (SBFC) is a systemically important Non Banking Finance
Company set up with a view to provide credit to the under served and under
penetrated market of small entrepreneurs in fringes of Urban and Semi Urban
towns across the country. With over 90 branches spread across more than 60
cities and a staff of over 800 employees, it reaches out to these traditional
micro enterprises that form the backbone of the Indian economy.
SBFC has developed a Phygital model
leveraging technology by a stitched architecture where the entire work flow,
from origination to disbursals and repayments moves digitally in the system
using a bespoke state of the art Loan Origination System christened ‘Leviosa’.
This enables evaluation of customer income through Income tax & GST
returns, banking transactions etc to arrive at quick decisioning while ensuring
that human face and interactions keep relationships first as well as deliver
better credit assessment of the customer.
SBFC has an equity of Rs. 850 crores with
Rs.1100 crores of Assets Under Management. Its management team comprises of
professionals each with over two decades of experience in Financial Services.
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