Union Bank of India partners with Ambit Finvest for co-lending to MSMEs
Ambit Finvest Private Limited (Ambit Finvest), the non-bank non-deposit taking financial company (NBFC) of the Ambit Group has signed a co-loan agreement with Union Bank of India (UBI) to lend to micro, small and medium enterprise customers (MSME).
This alliance will ensure underwriting for arrangements, having a positive impact on the creditworthiness of MSMEs, in 11 States currently covered by Ambit Finvest. Many MSMEs face challenges related to higher interest rates or are barred from accessing banking services, the company said in a statement.
“Thanks to this innovative lending model, MSMEs will now benefit from a lower blended interest rate, translating into a lower cost of funds, helping them to deploy capital more efficiently in their business,” the statement added. .
“The partnership with Ambit Finvest Pvt Ltd. is part of UBI’s strategy to create a synergy between the two companies that will help us serve the most deserving and underserved businesses. This initiative is part of Union Bank’s commitment to supporting MSMEs by providing tailored financial solutions and accelerating the growth of MSMEs to contribute to the economic development of the country,” said Lal Singh, CGM, MSME, Union Bank .
Sanjay Dhoka, COO & CFO, Ambit Finvest said that with this alliance, Ambit Finvest and Union Bank of India aim to facilitate rapid disbursement of credit across different geographies. “The co-lending partnership with a large organization like Union Bank of India will help Ambit Finvest further expand its footprint in the MSME segment,” he added.
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