Satin Creditcare and Karnataka Bank Join Forces for Microfinance Co-lending

29 Dec 2023 , 02:22 PM

Satin Creditcare Network’s shares initially surged around 5% but later turned red on December 29 after entering a master agreement with Karnataka Bank for co-lending to microfinance borrowers.

The co-lending module involves tranches, with Satin Creditcare Network as the service provider, managing collections and monitoring. The fund ratio is 80:20, with the bank funding the larger share.

At the time of writing, Satin Creditcare Network shares traded at Rs 237.1 on the NSE, down 0.92% from the previous session’s close. 

The microfinance loans agreement complies with RBI limits and guidelines for lending to the priority sector.

The agreement aims to leverage the competitive advantages of banks and NBFCs in a collaborative effort to provide affordable credit to a broad customer base, according to Satin Creditcare Network.

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