HDFC Bank Inks Co-Lending Pact With Ashv Finance To Boost MSME Lending

(MENAFN- KNN India) New Delhi, Jun 8 (KNN)
In a move aimed at enhancing credit access for micro and small enterprises (MSEs), HDFC Bank, India's leading private sector lender, has entered into a co-lending agreement with Ashv Finance, a non-banking financial company under the Aavishkaar Group that specialises in impact investing.

The collaboration will enable Ashv Finance to provide unsecured business loans ranging from Rs 20 lakh to Rs 50 lakh to eligible MSEs, with repeat customers qualifying for loans up to Rs 75 lakh. The loan tenures will span from 12 to 36 months.

Nikesh Kumar Sinha, Managing Director, Ashv Finance, lauded the partnership, stating, "This tie-up validates our data-driven approach to underwriting MSME businesses and contributes to the 'Make in India' initiative by extending credit to MSMEs across the country."

The unsecured business loans are designed to support MSMEs in various aspects of their operations, including infrastructure investments, working capital requirements, acquisition of new plant and machinery, technology adoption, and overhead expenses such as salaries, rent, and office costs.

To qualify for the loans, MSMEs must have been in operation for at least three years, with an annual turnover ranging from Rs 3 crore to Rs 100 crore. They must also provide GST and income tax returns for the previous three years.

Raveesh Bhatia, Group Head of the Emerging Corporates Group, HDFC Bank, expressed optimism about the collaboration, stating, "Through our partnership with Ashv Finance Ltd, we aim to increase financial inclusion for last-mile customers, empowering individuals and businesses to realise their aspirations."

Ashv Finance has been actively pursuing co-lending partnerships to bolster its MSME lending capabilities.

In December 2022, the company secured USD 10 million in funding from Encourage Capital to launch a new initiative focused on financing rooftop solar installations for micro and small businesses.

Ashv Finance currently manages assets worth Rs 1,000 crore and has a presence across 15 states in India.

The co-lending agreement between HDFC Bank and Ashv Finance underscores the increasing emphasis on supporting the MSME sector, which plays a pivotal role in driving economic growth and employment generation in the country.

(KNN Bureau)


KNN India

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