Getting loans from the State Bank of India (SBI) is all set to become easy for people living in remote locations who want to set up new businesses or grow their existing ones as the country’s largest public sector scheduled commercial bank has joined hands with Paisalo Digital Limited to disburse loans to empower the Agriculture, MSME (Micro, Small, and Medium Enterprises) segment and small businesses.
Paisalo, which is a systemically important non-deposit taking non-banking financial company (NBFC) registered with the Reserve Bank of India (RBI), has signed the first co-origination loan agreement with SBI to introduce a platform for the last-mile customers.
As per the agreement with SBI, the loan ticket is designed at Rs 10,000 to Rs 2 lakh, and Paisalo expects to disburse 2 lakh loan applications in FY20 through the platform.
It is the first agreement of its kind in the country that SBI has signed, which would provide a boost in the priority sector lending space. Through the agreement, SBI and Paisalo expect to disburse loans to even last mile first-time borrowers.
More than 6 crore businesses comprise the MSME sector in India, that drives a substantial amount of economic growth and the partnership between SBI and Paisalo in a co-lending model is seen as the first huge step towards deeper penetration in the market.
In operations since 1992, Paisalo has AUM of over Rs 2,000 crore with a net worth of Rs 671.9 crore as in the third quarter of FY19. The company serves customers with 118 branches in rural areas of Uttar Pradesh, Maharashtra, Himachal Pradesh, Gujarat, Rajasthan, Delhi, Haryana, Punjab, Uttarakhand and Bihar, and has serviced nearly 10 lakh borrowers and has over 2.5 lakh current borrowers.
Hoping that the cooperation would make loan disbursal and repayment smooth and enable the customers to reach Paisalo with ease, company Managing Director Sunil Agarwal said, We at Paisalo have always believed in our mission of conducting business with a social conscience and we intend to continue this thought throughout our journey. We are delighted to associate with the State Bank of India as their first co-lending partner, and are thankful to the State Bank of India for their trust.
We aim at partnering with the people in the growth journey of their business and help them contribute to maximum job creation. Our loan ticket and tenure is designed to cater to this special segment for their working capital and other requirements, he added.