HT Bureau
Guwahati, April 1: Axis Bank and Shriram Housing Finance Limited (SHFL) announced a strategic partnership under the co-lending model through the Yubi Co. lend platform. Through this partnership, both lenders will offer secured MSME (Micro, Small, and Medium Enterprises) Loans and Home Loans to middle and low-income segment borrowers based in rural and semi-urban regions. The partnership will leverage the deep financial expertise of Axis Bank, and the loan processing technology of SHFL to assess the credit profile of borrowers and provide them loans at competitive interest rates through a network of 123 branches of SHFL.
Speaking on the collaboration, Munish Sharda, Group Executive & Head – of Bharat Banking, Axis Bank said, “The partnership with SHFL is aligned with the Bank’s Bharat Banking mission of driving financial inclusion in the rural and semi-urban regions in a seamless digital manner. This alliance will improve our reach, strengthen our presence in the MSME and affordable home loans segment, and augment the priority sector lending portfolio of the Bank. We are excited to grow the partnership using our digital co-lending platform and offer a superior customer experience.”
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Commenting on the partnership, Ravi Subramanian MD & CEO, Shriram Housing Finance Limited added, “The Axis-SHFL partnership is a powerful combination. Together we will expand our reach and serve a much larger customer base for Housing and secured MSME loans, specifically targeting borrowers at the bottom of the pyramid. Through the co-lending model, we intend to channel credit to the priority sector as we step up lending in a credit-starved economy.”
The collaboration between two lenders aims to cater to customers in the unorganized sector, including self-employed or salaried borrowers who have limited access to credit due to the lack of sufficient income proof. By combining their strengths, Axis Bank and SHFL will address the credit gap faced by MSMEs and home loan borrowers by utilizing their extensive customer reach and rigorous credit underwriting and assessment tools.
