Piramal Finance and Central Bank of India Expand Co-Lending Operations
Piramal Finance, a subsidiary of Piramal Enterprises Limited, has entered a strategic alliance with the Central Bank of India to scale co-lending operations. This partnership aims to substantially improve credit accessibility in underserved markets, particularly targeting middle and low-income borrowers in rural and semi-urban regions.
Bank Access for Underserved Markets
The partnership leverages the Central Bank of India’s extensive branch network, combining it with Piramal Finance’s technology-driven lending approach. Together, they plan to offer loans at competitive interest rates through Piramal Finance’s 500-branch network, which spans 600 districts across 26 states. They primarily focus on delivering personalized credit solutions to individuals new to credit or underserved by traditional financial institutions.
Strategic Focus and Bank Implementation
Piramal Finance and the Central Bank of India will collaborate to increase access to formal credit in underserved regions. The combined networks aim to penetrate deeper into Bharat, meeting the financial needs of customers who are often excluded from formal credit due to limited income documentation. This initiative specifically targets individuals in the unorganized sector, including self-employed and salaried workers, by bridging the credit gap for micro, small, and medium-sized enterprises (MSMEs) and home loan borrowers.
Advancing Financial Inclusion with Digital Payments
India’s digital payment ecosystem has experienced rapid expansion due to supportive regulatory initiatives, the widespread adoption of UPI, and the growth of e-wallet platforms. Although cash transactions remain popular, the continued advancement of digital payments is driving the country closer to a cashless society. This shift is integrating previously underserved communities into the formal economy, empowering women economically, and significantly boosting the growth of small and medium-sized enterprises (SMEs).