Mahindra Finance, one of India’s leading non-banking financial companies (NBFCs), and State Bank of India (SBI), India’s largest public sector bank, announced a strategic co-lending partnership on Wednesday. The partnership aims to harness the distribution strength of NBFCs and the cost-efficient capital of banks to offer affordable credit to a wider range of customers.
Under the co-lending arrangement, Mahindra Finance will facilitate leads and manage loan servicing, while SBI will provide the funding. The interest rates offered will be determined based on the customer’s credit profile, ensuring a personalized and competitive financing experience.
The partnership is expected to benefit underserved segments of the economy, such as MSMEs and rural borrowers. It also marks Mahindra Finance’s first co-lending tie-up with a bank.
Both Mahindra Finance and SBI have expressed their commitment to empowering the MSME sector through this partnership. Raul Rebello, MD & CEO-Designate, Mahindra Finance, said that the collaboration is a step forward in enhancing financial accessibility and inclusivity.
Mahindra Finance shares were up 0.061% on Wednesday to Rs 245.50 at 12:05 pm IST.
