Central Bank of India ties up with SFISPL to offer agriculture and MSME loans, widens portfolio

Featured in The hindu businessline

“The participation by both the entities in this co-lending arrangement will result in greater expansion of portfolio by Central Bank of India and Samunnati Financial Intermediation & Services Private Limited.”

Central bank of India has entered into a strategic co-lending partnership with Samunnati Financial Intermediation & Services Private Limited to offer agriculture MSME loans. “The participation by both the entities in this co-lending arrangement will result in greater expansion of portfolio by Central Bank of India and Samunnati Financial Intermediation & Services Private Limited,” Central Bank of India said in a regulatory filing.

Samunnati Financial Intermediation & Services Private Limited (SFISPL) is registered with Reserve Bank of India and is engaged in providing loans for agriculture and allied activities as well as to the MSME sector.

SFISPL exclusively works in the agriculture sector to make the agri value chains work at a higher equilibrium to make markets work for smallholder farmers. As on date, SFIFPL is functioning in 22 states with offices in over 30 locations. As on 31.3.2023, SFISPL is managing an AUM of Rs 1150 crore.

Under the arrangement, SFISPL will originate and process loan proposals under agriculture and MSME sector as per jointly formulated credit parameters and eligibility criteria and Central Bank of India will take into its books 80 per cent of the agriculture and MSME loans under mutually agreed terms. SFISPL will service the loan account throughout the life cycle of the loan. “The co-lending arrangement is expected to help both the entities to offer convenient experience and customer delight to their customers as well as help expand their reach across India,” it said.

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