Edelweiss Reinforces co-lending Partnership with Central Bank of India for MSME

Edelweiss Retail Finance (ERFL) has announced that is intending to strengthen its co-lending partnership with Central Bank of India for priority sector lending to micro, small and medium enterprises (MSMEs).

MSMEs can now avail of collateral free business loans up to 50 lakh as against 10 lakh earlier.

Additionally, they can also avail of loan against property up to 10 crore. Building on the success of their partnership, the lenders have collaborated to introduce specially designed products with increased loan limits for the MSME segment.

Mehernosh Tata, CEO of Edelweiss Retail Finance, says that the initiative is aimed towards unlocking higher business value and delivering a digitally enhanced experience to MSME borrowers.

He adds, "This arrangement is a win-win for MSMEs, the bank and us. It will help channelise credit to the priority sector as we step up lending in a credit starved economy."

Tata also announced that this would expand the reach to underserved markets, enabling priority sector borrowers to get credit at lower costs.

As the country slowly moves out of Covid pandemic, the credit given through the collaboration will provide MSMEs with access to cost effective capital, help their economic revival and growth, he added.