Edelweiss subsidiary ECL Finance has signed an agreement with the State Bank of India to boost credit access to micro, small and medium-sized enterprises – the third such deal the major non-banking financial group has made.
The agreement is in line with Indian authorities commitment to encourage non-banking financial company participation through the co-origination model and ultimately boost loan access to MSMEs. The ECL-SBI agreement will include access to business loans, machinery loans and SME asset-backed loans.
According to Edelweiss Group chairman and CEO, Rashesh Shah, the revival of MSMEs will be made «possible only by making credit available to this vital contributor of the Indian economy,» highlighting greater and easier access to credit at lower costs due to «a specialized blended rate of interest».
ECL Finance has been on a co-origination partnership frenzy as of recently with SBI marking the third such agreement concluded in addition to tie-ups with Bank of Baroda and Central Bank of India.
