Bank of Baroda, the third largest public sector bank in the country, entered into a partnership with KapitalTech, a fintech lender, for co-origination of loans to the MSME sector, under the co-origination guidelines of the Reserve Bank of India.
The partnership aims at offering working capital business loans to MSMEs in over 200 micro markets across India. The focus will be to reach out to small businesses in need of capital in Tier II & Tier III cities that are traditionally underserved by financing channels.
“We are committed to working jointly with various partners to support MSMEs, and we have entered into this MoU to enhance our footprint in delivery of products and services in the MSME eco-system,” said Shri Vikramaditya Singh Khichi, Executive Director at Bank of Baroda.
‘We will be using our end-to-end paperless Tech-stack which includes ‘DEXTER’ – a Machine Learning underwriting Engine. This partnership is a validation of our high-quality portfolio and our ability to cater to wide-ranging MSME customers,” KapitalTech company statement said.
KapitalTech is among the fastest growing Fintech Lenders in India. KapitalTech has lent over INR 2000 crore so far, spread across 15000+ MSME customers with loan tenures ranging from for 12 to 36 months.
Established on July 20, 1908, Bank of Baroda is India’s third largest bank with a strong domestic presence supported by self- service channels. The Bank’s distribution network includes 9,500+ branches, 13,400+ ATMs and 1,200+ self-service e-lobbies. The Bank has a significant international presence with a network of 100 branches/offices of subsidiaries, spanning 21 countries. The Bank has wholly owned subsidiaries including BOB Financial Solutions Limited (erstwhile BOB Cards Ltd.), BOB Capital Markets and Baroda Asset Management India Ltd. Bank of Baroda also has joint ventures for life insurance viz. India First Life Insurance and India Infradebt Ltd., engaged in infrastructure financing. The Bank owns 98.57% in The Nainital Bank. The Bank has also sponsored three Regional Rural Banks namely Baroda Uttar Pradesh Gramin Bank, Baroda Rajasthan Gramin Bank and Baroda Gujarat Gramin Bank.