Sidbi partners C2treds, UGRO Capital to facilitate loans to MSME sector
Partnership is established under the Reserve Bank of India’s (RBI) co-lending framework, designed to leverage the strengths of banks and NBFCs to boost priority sector lending | (Photo: Wikipedia)
Small Industries Development Bank of India (Sidbi) has partnered with C2treds and UGRO Capital to facilitate loans to the MSME sector.
Sidbi has onboarded C2treds, a platform that offers MSMEs liquidity within 24 hours through an online bidding process, C2FO said in a release.
C2FO is an on-demand working capital platform, providing fast, flexible and equitable access to low-cost capital to nearly 2 million businesses worldwide.
“Through this strategic collaboration, C2treds aims to enhance liquidity for MSMEs at competitive interest rates,” it said.
C2treds operates under the Trade Receivables Discounting System (TReDS) initiative which enables the discounting of invoices and is regulated by the Reserve Bank of India (RBI) to support the MSME sector in India.
As the apex institution for the promotion and development of MSMEs, Sidbi is fully committed to increasing the flow of credit to MSMEs. TReDS has become an effective tool for the prompt realization of MSMEs’ receivables and Sidbi is onboarded on all operational TreDS platforms,” said Prakash Kumar, DMD, Sidbi.
Basant Kaur, Country Head of C2FO India said that Sidbi joining the C2treds platform will significantly amplify the company’s efforts to support the growth of MSMEs, which are the employment engines of India.
In a release, UGRO Capital, a datatech NBFC and co-lender in the MSME segment, announced its strategic co-lending partnership with the Sidbi.
The partnership is established under the Reserve Bank of India’s (RBI) co-lending framework, designed to leverage the strengths of banks and NBFCs to boost priority sector lending, URGO said.
Commenting on the partnership, Shachindra Nath, founder and managing director of UGRO Capital, said: “This collaboration is a testament to our commitment to driving financial inclusion and supporting the growth of MSMEs across the nation”.
UGRO Capital said it has already extended bespoke finance solutions to over 78,000 MSMEs in India.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
First Published: Jul 30 2024 | 8:51 PM IST