Karnataka Bank and Clix Capital partner for co-lending through Yubi platform
Separator

Karnataka Bank and Clix Capital partner for co-lending through Yubi platform

Separator

KarnatakaKarnataka Bank (KBL), a prominent private sector bank, and Clix Capital, a rapidly expanding non-banking financial company (NBFC) in India, have established a strategic collaboration in digital co-lending. This partnership is facilitated through the YubiCo.Lend platform, showcasing the commitment of both entities to leverage innovative digital solutions in the lending space. The collaboration aims to enhance accessibility to credit facilities, fostering financial inclusion by combining the strengths of Karnataka Bank's established banking expertise with Clix Capital's cutting-edge approach in the non-banking financial sector.

This collaborative effort is specifically geared towards extending loans to the Indian Micro, Small, and Medium Enterprises (MSME) sector, recognized as a significant contributor to India's Gross Domestic Product (GDP) and employment growth. The initiative aligns with the Reserve Bank of India's (RBI) directives regarding co-lending by banks and non-banking financial companies (NBFCs) in priority sectors, underlining a shared commitment to supporting the crucial MSME segment.

The synergy between Karnataka Bank and Clix Capital capitalizes on Karnataka Bank's advantageous position with low-cost funds, comprehensive digital capabilities, and expertise to deliver credit facilities to the MSME sector. This collaboration further integrates Clix Capital's robust and user-friendly lending technology platform, coupled with rigorous due diligence practices, to create a powerful offering for this vital sector.

The overarching goal of this partnership is to provide seamless and cost-effective financing solutions through a digital framework, ensuring convenience for the stakeholders involved. By leveraging each other's strengths, Karnataka Bank and Clix Capital aspire to address the underserved needs within the MSME sector comprehensively. The formal agreement marking this collaboration was officially signed in Bengaluru.