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U GRO Capital Signs SME Loan Co-Origination Agreement with State Bank of India

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U GRO Capital, a BSE listed, technology-enabled small business lending platform, entered into a loan co-origination partnership with State Bank of India. The agreement was signed by Mr. Jayanta Deb Majumdar, General Manager, SBI and Mr. Shachindra Nath, Executive Chairman of U GRO Capital, in Mumbai.

The collaboration will work towards offering credit at a competitive rate of interest with a reduced turn-around time by using U GRO Capital’s indigenously developed co-lending technology platform ‘GRO- Xstream’.

‘GRO-Xstream’ empowers banks and other large financial institutions to reach out to deepen their distribution reach and service small businesses across India. Smaller NBFCs can also opt for co-lending partnership with U GRO Capital leveraging U GRO Capital’s proprietary analytical tool.

Commenting on the association with SBI, Mr. Abhijit Ghosh, Whole Time Director & CEO of U GRO Capital said, “We are delighted to enter into the co-origination agreement with SBI, the largest lender in the country. The synergy will help in increasing access to credit for SMEs and MSMEs across the country. Our proprietary co-lending technology platform ‘GRO-Xstream’ and deep sectoral expertise combined with SBI’s vast experience in lending and large capital base will increase availability of liquidity to growth-focused SMEs both in metros and tier-level cities. We are committed to make the lending eco-system of the country more inclusive. We are looking forward to a long-lasting association with SBI.”

U GRO Capital is focusing on entering into co-origination partnerships with larger banks or NBFCs. Loan co-origination is a key component in the Company’s three-pronged liability strategy involving balance sheet lending, an off-balance sheet model including assignments and securitization to create a truly hybrid lending model.

U GRO Capital has also entered into its first loan co-origination partnership with Bank of Baroda in October this year.

U GRO Capital is a new-age listed fintech platform whose mission is to solve the ever-growing credit gap in the SME sector based on knowledge and technology. The Company has developed proprietary tools which include customized SME sector -specific statistical scorecards, underwriting insights based on deep sub-sector level research put together in a highly integrated technology platform. This helps in getting an in-principle decision for the loan application within 60 minutes. The Company has already disbursed more than INR 600 crore across 6000+ small businesses in a short span of 10 months.

U GRO Capital, founded by financial services veteran Mr. Shachindra Nath, in December 2017, had previously raised approximately US$ 140 Mn from a diversified set of global private equity investors such as NewQuest, ADV Partners, PAG and Samena Capital and public market investors such as Abakkus, PNB Metlife and multiple Indian family offices.

SMEStreet Desk

SMEStreet is fast growing platform dedicated to entrepreneurs from small and medium sized businesses (SMEs). Committed to facilitate Knowledge & Networking for Business Growth, SMEStreet offers value added content which shows the actual voice of Indian MSMEs.

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