Piramal Finance, a subsidiary of Piramal Enterprises Limited, has entered into an agreement with the Central Bank of India to expand co-lending operations.
In a bid to support and reach underserved markets, Piramal Finance teamed up with the Central Bank of India, with the two organisations planning to centre their efforts on offering loans to middle and low-income borrowers, mainly in rural and semi-urban regions. By merging the Central Bank of India’s branch network and Piramal Finance’s technological approach to lending, the partnership focuses on digital efficiency and customised service.
The partnership’s plans and strategy
Via Piramal Finance’s 500-branch network, which spans 600 districts and 26 states, the alliance intend to provide competitive interest rates and personalised credit solutions to borrowers who are new to credit or underserved by traditional financial institutions. According to Piramal Finance’s officials, by joining forces with the Central Bank of India, the two organisations intend to increase access to formal credit in underserved markets. Additionally, the company highlighted the potential of the combined networks to reach deeper into regions across Bharat, intending to assist the financial needs of customers who are frequently excluded from formal credit due to limited income documentation.
Furthermore, Piramal Finance and the Central Bank of India’s initiative is set to focus on addressing the credit requirements, needs, and demands of individuals in the unorganised sector, including self-employed and salaried workers. Through their combined experience and expertise, the two entities aim to bridge the credit gap for micro, small, and medium-sized enterprises (MSMEs) and home loan borrowers.
How do digital payments support financial inclusion in India?
In recent years, India’s digital payment ecosystem has expanded substantially, due to regulatory initiatives, the introduction of UPI, and the emergence of e-wallet platforms. Even if cash transactions maintain their position as a preferred payment method for Indians, the digital payment landscape is projected to further grow in the upcoming period. In addition, the region has been focusing its efforts on pushing towards creating a cashless society, which brought underserved communities into its economy. The country’s digital payments infrastructure also provided opportunities for women to contribute to the economy, as well as facilitated the expansion of small and medium-sized enterprises (SMEs).
