Central Bank inks pacts with Protium Finance, lncred Fin to provide loans

State-owned central bank of india has forged co-lending partnerships with protium finance and lncred financial services to offer loans to MSM borrowers.

The partnerships will provide extra expansion of portfolio by the bank and to these players, the bank stated on friday.

The state-owned lender said that protium finance will originate and preocess msme proposals under the priority sector as together formulated creditparameters and eligibility standards and central bank of india will take into its books 80 percent of the msme priority sector loans below at the same time agreed terms.

“Protium Finance Limited will service the loan account throughout the life cycle of the loan. The co-lending arrangement is expected to help both the entities…as well as help expand reach across India,” the bank said in a regulatory submitting.

Protium finance has a branch network across 11 states and an AUM of 1,671 crore as of july 31, 2022, with a consumer franchise at 1,08,447.

Likewise, incred financial services will originate and process msme loans under priority and take into its books 80 per cent of such loans. Ifsl will service the loan account for the duration of the life cycle of the loan.

With branches throughout nine states, incred financial services offers client loans, education loans and msme lending.