RBL Bank, a private sector lender, has entered into a co-lending partnership with Piramal Finance, a subsidiary of Piramal Enterprises, to provide loans to middle- and low-income borrowers in rural and semi-urban areas across India. This collaboration combines RBL Bank’s financial expertise with Piramal Finance’s technology-enabled loan processing system, “High Tech + High Touch”. This is Piramal Finance’s third co-lending partnership, following similar agreements with Axis Bank and Central Bank of India.
The co-lending model, initiated by the Reserve Bank of India (RBI), aims to scale credit flow to underprivileged sectors by facilitating collaboration between banks and non-banking financial companies (NBFCs). By combining their strengths, RBL Bank and Piramal Finance plan to offer loans personalized to meet the needs of micro, small, and medium-sized enterprises (MSMEs) and home loan borrowers in underserved regions.
The partnership focuses on addressing the credit gap in Tier 2 and Tier 3 markets, with a goal of providing formal credit access and competitive interest rates. RBL Bank and Piramal Finance will leverage their combined customer reach, underwriting practices, and credit assessment tools to achieve this aim. This collaboration advances RBL Bank’s commitment to financial inclusion across the region, and the companies are set to create a significant impact in the market. Overall, this partnership has the potential to bring affordable credit to those who need it most, helping to bridge the financial divide and stimulate economic growth.