TruCap Finance Limited and HDFC Bank Commence Co-Lending Partnership for MSME Business and Gold loans

TruCap Finance Limited (TRU) and HDFC Bank have commenced business under a co-lending partnership where TRU will leverage its Lending-as-a-Service (L-a-a-S) model to offer quality credit solutions to underserved borrowers. Under this partnership, HDFC Bank and TRU will offer MSME Business Loans and Gold Loans to borrowers pre-dominantly in non-urban locations. According to industry estimates, the MSME sector has a total credit demand of INR 69.3 trillion, growing at a CAGR of 11.5% with less than 15% of the demand being catered to by formal sources.

"We are on a mission to narrow the formal credit gap between sustainable small businesses and lending institutions which in turn will drive financial inclusion and empowerment, especially to women-led businesses. We are privileged and honoured to partner with an esteemed institution like HDFC Bank to serve our mission where both HDFC Bank and TRU will gain to benefit from TRU's sourcing, distribution, assessment & collection strengths in non-urban markets and ensure that capital is effectively deployed to ensure last mile credit delivery", said Mr. Rohan Juneja, MD & CEO of TRU.

TRU has cumulatively disbursed more than 2,000 Cr. in loans to over 1.9 lakh customers to support credit inclusion of underserved businesses. With a network of more than 118 branches today that are strategically located in over 50 cities in MSME clusters of West, Central and North India, TRU aims to enable timely solutions being delivered to small businesses, whether it is to avail working capital, or purchase assets to enhance their revenue, and power livelihood generation in non-metro regions.

Mr. Sumant Rampal, Group Head - Business Banking & Rural Banking, HDFC Bank said, "The partnership with TruCap helps us in expanding financial inclusion to the last mile customer and provides them with convenience, speed and affordability. This joint work is allowing us to reach customers in semi urban and rural markets and to the mini micro segment of MSMEs. With quick approvals, competitive rates and extended reach, this collaboration empowers more individuals and businesses to fulfil their dreams. We are excited to make a positive impact together."

Shares of HDFC Bank Limited was last trading in BSE at Rs. 1563.90 as compared to the previous close of Rs. 1629.05. The total number of shares traded during the day was 1922144 in over 129998 trades.

The stock hit an intraday high of Rs. 1599.00 and intraday low of 1560.60. The net turnover during the day was Rs. 3018648365.00.

Source : Equity Bulls

Keywords

HDFCBank INE040A01034 HDB TruCapFinance CoLendingPartnership MSME Business GoldLoans LaaS