Karnataka Bank (KBL), a prominent private sector bank, and Clix Capital, a rapidly expanding new-age Non-Banking Financial Company (NBFC), have forged a strategic digital co-lending alliance via the Yubi Co.lend Platform. This collaboration aims to extend loans to the Indian Micro, Small, and Medium Enterprises (MSME) sector, a significant driver of India's GDP and employment expansion. The arrangement aligns with the Reserve Bank of India's directives on cooperative lending by banks and NBFCs to priority sectors.

This collaboration leverages Karnataka Bank's cost-effective funding, comprehensive digital capabilities, and proficiency to provide credit facilities to the specified segment. Paired with Clix Capital's robust and user-friendly lending technology platform, as well as rigorous due diligence processes, the partnership is geared towards delivering streamlined and cost-effective financing solutions in a digital format. This strategic alliance facilitates both partners to capitalize on each other's strengths to cater to underserved segments. The signing of the agreement took place in Bengaluru.

Speaking on the collaboration, 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".

Commenting on the co-lending agreement with Karnataka Bank, 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 fulfill their aspirations of seeking seamless and affordable business loans to grow". Sekhar Rao, Executive Director, Karnataka Bank, stated, “The tie-up shall leverage technology and digital solutions to seamlessly extend the wide range of financial products to MSME sector".