New Delhi [India]: Non-banking finance company Paisalo Digital said on Thursday that it has signed a co-origination loan agreement with government-owned Bank of Baroda to empower farmers, MSME segment and small businesses.
The company already has similar tie-ups with State Bank of India and Bank of Maharashtra.
Under the agreement with Bank of Baroda, both entities will jointly reach out to prospective customers and conduct due diligence for extending small-ticket size loans ranging between Rs 10,000 to 40,000 with a special focus on Uttar Pradesh.
The initiative will support the government's vision of financial inclusion by extending loans to a large unserved population of the country by reaching the doorstep of last-mile borrower at reasonable terms, said Paisalo's Managing Director and CEO Sunil Agarwal.
"The co-originating arrangement will entail a joint contribution of credit by the company and the bank. It will involve sharing of risks and rewards between the two entities," said Agarwal.
The company has assets under management totalling Rs 2,000 crore with a net worth of Rs 725 crore. It serves customers with 116 branches in Uttar Pradesh, Maharashtra, Himachal Pradesh, Gujarat, Rajasthan, New Delhi, Haryana, Punjab, Uttarakhand and Bihar.