Dvara KGFS, HDFC Bank in co-lending pact to support micro businesses in rural India

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Dvara KGFS, a Chennai-based NBFC, has entered into a co-lending partnership with HDFC Bank to provide capital to micro business units operating primarily in the unorganised sector.

Dvara KGFS is a rural-focused non-banking lender. It launched an enterprise loan vertical in 2020, focussing on grocery, dairy, and agri value chains. The lender said the collaboration with HDFC Bank will help the company to realise its ambition of extending credit to micro businesses across the 10 States it serves. 

Also read: Dvara KGFS raises $10 million in ECB

The concept of co-lending has been gaining traction, under which loan origination is done by one entity, but the risk is shared by two entities. An NBFC is the originator while a bank is where the major portion of the loan rests.