Trucap, HDFC Bank Enter Into Co-Lending Agreement For MSME Borrowers

(MENAFN- KNN India) TruCap, HDFC bank Enter Into Co-Lending Agreement For MSME Borrowers

New Delhi, Sept 22 (KNN) TruCap Finance Limited (TRU) and HDFC Bank, on Thursday announced their partnership to offer loans to underserved borrowers such as MSMEs.

Under the pact, TRU will leverage its Lending-as-a-Service (L-a-a-S) model to offer quality credit solutions to underserved borrowers,
primarily in non-urban locations.

Trucap, HDFC Bank Enter Into Co-Lending Agreement For MSME Borrowers Image

Both HDFC Bank and TRU will extend MSME business loans and gold loans under this collaboration.

Industry estimates indicate that the MSME sector has an overall credit demand of Rs 69.3 trillion, growing at a compound annual growth rate (CAGR) of 11.5 per cent. Less than 15 per cent of this demand is met by formal lending channels.

TRU, which specialises in MSME lending, focuses on offering affordable credit solutions aimed at propelling the growth of small businesses.

Rohan Juneja, managing director and chief executive officer of TRU, noted, "The partnership with HDFC Bank will serve our mission where both entities will benefit from TRU's sourcing, distribution, assessment, and collection capabilities in non-urban markets. This ensures effective deployment of capital to guarantee last-mile credit delivery."

TRU has already disbursed over Rs 2,000 crore in loans, aiding more than 190,000 customers and contributing to the credit inclusion of underserved businesses.

The company's expansive network includes more than 118 branches scattered across over 50 cities in the MSME clusters of West, Central, and North India.

This extensive presence enables TRU to deliver timely credit solutions to small businesses for varied needs, such as availing working capital or purchasing assets, thereby enhancing revenue and livelihood generation in non-metro regions.

Sumant Rampal, Group Head – Business Banking & Rural Banking, HDFC Bank said, "The partnership with TruCap helps us in expanding financial inclusion to the last mile customer and provides them with convenience, speed and affordability. This joint work is allowing us to reach customers in semi-urban and rural markets and the mini micro-segment of MSMEs. With quick approvals, competitive rates, and extended reach, this collaboration empowers more individuals and businesses to fulfill their dreams."
(KNN Bureau)


KNN India

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