Mumbai, Jun 1 (IANS): Edelweiss Retail Finance Limited (ERFL), an arm of the Edelweiss Group on Tuesday announced strengthening of its existing Co-Lending partnership with Central Bank of India (CBoI), one of India's largest commercial banks for Priority Sector Lending to MSMEs (Micro, Small and Medium Enterprises).

The lenders recently signed a new MoU under RBI's CLM, expanding the portfolio of lending products available to MSMEs, who can now avail of collateral free business loans up to Rs 50 lakh as against Rs 10 lakh earlier. Additionally, they can also avail of LAP Loans (with property backed collateral), up to Rs 10 crore. Building on the success of their partnership, the lenders have collaborated to introduce specially designed products with increased loan limits for the MSME segment, a statement from the financial services company said .

Speaking on the development, Deepak Mittal, Head, Edelweiss Credit Business Groupsaid, "At a time when we are witnessing the biggest disruption of our lives in the form of a pandemic and businesses across the globe have been badly hit, co-lending can provide the much-needed impetus with greater access to credit. This is also in line with our strategic objective of being asset light and building a high-quality lending book. We are happy to partner with a reputed institution like Central Bank of India to provide easier access of credit to MSMEs, who form the backbone of the Indian economy and help drive financial inclusion and democratise access to credit.''

Mehernosh Tata, CEO, Edelweiss Retail Finance Limited added, "We are excited to partner with Central Bank of India, towards unlocking higher business value and delivering a digitally enhanced experience to MSME borrowers. This arrangement is a win-win for MSMEs, Bank and us and will help channelize credit to the priority sector as we step up lending in a credit starved economy. ''

This alliance leverages the strength of both lenders, making this a winning proposition for all stakeholders. Edelweiss brings its expertise in loan origination and servicing capabilities including a digitally powered lending platform, while Central Bank brings in its strength of lower cost of funds. This will expand the reach to underserved markets, enabling Priority Sector borrowers to get credit at lower costs. As the country gradually moves out of the pandemic, the credit offered through this partnership will provide MSMEs with access to cost effective capital, aiding their economic revival and growth, the statement added.