HDFC Bank and TruCap Join Forces to Boost Credit Access for MSMEs

21 Sept 2023 , 01:43 PM

TruCap Finance Limited (TRU) and HDFC Bank have joined forces for a co-lending partnership. TRU, a non-banking finance company, specializes in gold and business loans. TRU will use its Lending-as-a-Service (L-a-a-S) model to provide credit solutions to underserved borrowers. The partnership focuses on offering MSME business loans and Gold Loans mainly to borrowers in non-urban areas.

The MSME sector has a high credit demand, but only a small portion is met by formal sources. TRU specializes in providing affordable credit solutions to small business owners, particularly in the MSME sector. The collaboration aims to effectively distribute capital and provide last-mile credit delivery in non-urban markets.

TRU has already disbursed over Rs 2,000 crore in loans to support credit inclusion for underserved businesses. Their extensive network and branches across various regions of India help in the timely delivery of financial solutions to small businesses. HDFC Bank sees this partnership as an opportunity to expand financial inclusion to the last-mile customer, especially in semi-urban and rural areas, benefiting the MSMEs.

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