– Karnataka Bank and Paisalo Digital Limited have signed a Co-Lending Loan Agreement to boost the Priority Sector Lending Space.
– This is Karnataka Bank’s first such agreement with Paisalo.
– The collaboration aims to disburse loans to priority sector borrowers and promote financial inclusion.
Delhi,February 23, 2023: Small businesses and women entrepreneurs have emerged as great leaders in recent years, setting new heights of growth and progress for society. However, there is still a lot of potential for growth and success for this talented population. With adequate support, we can expect to see even more successful businesses and women leaders in the future.
Paisalo Digital Limited has taken a step towards empowering MSME, Retail, AGRI, Allied AGRI, and Women Entrepreneurs by signing a Co-lending loan agreement with Karnataka Bank. This agreement is in line with the latest RBI circular on Co-lending of loans, released on November 5, 2020. By leveraging Karnataka Bank’s low cost of funds on the liability side and Paisalo’s origination, rule engine, and underwriting capabilities on the asset side, the Karnataka Bank-Paisalo Co-lending platform will provide an end-to-end digital platform for sourcing, servicing, and recovery of small-ticket, income generation, and priority sector loans.
Shri Mahabaleshwara M S, Managing Director & CEO, Karnataka Bank, shares, “Co-lending model is one of the innovative avenues of lending to Priority sector. This tie-up shall create a dynamic synergy between the two sets of lenders, Paisalo Digital Limited & Karnataka Bank. As per RBI’s co-lending norms, this arrangement will help us in extending credit to the priority sector and promoting financial inclusion by providing necessary financial support to Micro Entrepreneurs. “
Santanu Agarwal, Deputy Managing Director, Paisalo Digital Limited, shares, “Paisalo sees a huge opportunity and is well-positioned to capitalize on the huge Rs. 8 lakh crore market of small-ticket loans for our 365 million underbanked and under-serviced population. Karnataka Bank and Paisalo Co-Lending Product is a big step towards Paisalo’s goal of creating the most competitive and seamless banking solution for India’s Bottom of Pyramid Population.”
Shri Gokuldas Pai, Chief Business Officer of Karnataka Bank, and Santanu Agarwal, Deputy Managing Director of Paisalo Digital Limited, exchanged this agreement at Karnataka Bank’s Regional Office in New Delhi.
