Karnataka Bank, Clix Capital ink co-lending partnership to bolster MSME loans

Lending agreement: The private sector lender Karnataka Bank (KBL) and Clix Capital on January 16 entered into a strategic, digital co-lending partnership through Yubi Co.lend Platform.

This partnership is focused on providing loans to the country's 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 (RBI) guidelines on co-lending by banks and NBFCs to priority sectors 
 
The partnership combines Karnataka Bank’s low cost of funds, and end-to-end digital capabilities to offer credit facilities to this segment, along with Clix Capital's lending technology platform.

The partnership aims to provide financing solutions economically through a digital medium.
 
Srikrishnan H, Managing Director & CEO of 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."
 
Rakesh Kaul, CEO at Clix Capital, said, "Our joined forces will together harness the robust networks to reach a broader audience."

Executive Director at Karnataka Bank, Sekhar Rao, said, "The tie-up shall leverage technology and digital solutions to extend a wide range of financial products to the MSME sector."