Mahindra Finance has formed a co-lending partnership with State Bank of India
By siliconindia | Thursday, November 2, 2023
Mahindra Finance, a part of the Mahindra Group, and one of India's leading Non-Banking Finance Companies, has recently announced a strategic co-lending partnership with State Bank of India (SBI), which is the largest public sector bank in India. This co-lending model is designed to leverage the distribution strength of Non-Banking Financial Companies (NBFCs) and the cost-efficient capital of banks, resulting in wider outreach and better interest rates for customers.
The partnership between Mahindra Finance and SBI was launched by Ramesh Iyer, VC and MD of Mahindra Finance, and the Managing Director of SBI, in the presence of Raul Rebello, MD and CEO-designate of Mahindra Finance, and the CGM (SME) from SBI. This partnership will provide affordable solutions to Mahindra Finance customers across India. The interest rates offered under this co-lending arrangement will be personalized and competitive, determined based on the customers' credit profile, to ensure a satisfactory financing experience.
Raul Rebello, MD and CEO- Designate, Mahindra Finance, said, "We are delighted to enter into this strategic co-lending arrangement with State Bank of India, India’s pioneer bank with multi-faceted experience. This collaboration is a step forward in enhancing financial accessibility and inclusivity. As we move forward, our focus remains on fostering innovation, embracing strategic collaborations, and tailoring our services to meet the evolving needs of our customers. Through this partnership, we will further our capability to be a responsible financial solution partner to Emerging India".
With Mahindra Finance's strong rural distribution network and expertise in the financial sector and SBI’s competitive capital cost, customers will get a competitive advantage. The objective is to extend joint financial support to customers, thereby enabling credit to the unserved segments of the economy at an affordable cost, marking Mahindra Finance's first co-lending tie-up with a bank. The partnership with SBI emphasizes the long-term commitment of both entities towards empowering the MSME sectors. Under this agreement, Mahindra Finance will facilitate leads and manage loan servicing while serving as a single point of contact for prospective customers.
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