Karnataka Bank and Clix Capital enter into co-lending partnership through Yubi Platform

mangaloretoday.com

Mangaluru, Jan 16, 2024: Karnataka Bank (KBL), a leading Private Sector Bank and Clix Capital, one of India’s fastest growing new-age NBFCs, have entered into a strategic digital co-lending partnership through Yubi Co.lend Platform. This partnership is focused on providing loans to the Indian MSME sector which is one of the biggest contributors to India’s GDP and employment growth. The agreement is in line with the Reserve Bank of India’s guidelines on co-lending by banks and NBFCs to priority sectors.

 

The partnership combines Karnataka Bank’s low cost of funds, end-to-end digital capabilities and expertise to offer credit facilities to this segment along with Clix Capital’s strong & easy lending tech platform and robust due diligence. The partnership aims to provide seamless financing solutions, conveniently and economically in a digital manner, thereby enabling both the partners to draw upon each other’s strengths to serve the unserved. The agreement was signed in Bengaluru today. 

Speaking on the collaboration, Mr. Srikrishnan H, Managing Director & CEO, Karnataka Bank said, “Our Co-lending partnership with Clix Capital will focus on digital credit to MSMEs with superior product and service offerings through our wide network of branches. By this arrangement the much needed liquidity at affordable rates for the MSME sector will be a reality. Clix Capital and Karnataka Bank will jointly address the MSME’s requirements adding impetus to the micro-credit facilities segment keeping in mind the sustainable economic growth for the country".

Mr. Sekhar Rao, Executive Director, Karnataka Bank, stated, “the tie-up shall leverage technology and digital solutions to seamlessly extend wide range of financial products to MSME sector”

Commenting on the co-lending agreement with Karnataka Bank, Mr. Rakesh Kaul, CEO, Clix Capital said, "We at Clix Capital feel elated as we sign this co-lending agreement with Karnataka Bank. With this partnership, we will bring to the table our tech prowess, and agility to understand and underwrite segments that largely remain underserved. Our joined forces will together harness the robust networks to reach a broader audience. Our efforts along with Karnataka Bank will empower the MSME to fulfil their aspirations of seeking seamless and affordable business loans to grow."