Utkarsh Small Finance Bank Announces Strategic Partnership With CredAvenue

The CredCo-Lend platform has a robust infrastructure to power the end-to-end loan life cycle and ensure compliance

CredAvenue, India’s first and largest co-lending marketplace, today announced the onboarding of Utkarsh Small Finance Bank. This partnership paves the way for the bank to expand its loan portfolio while also opening avenues for mutually beneficial 100:0 partnerships with non-banking financial companies (NBFCs), housing finance companies (HFCs) and microfinance institutions (MFIs) and fintech/digital finance players via the platform.

CredAvenue’s co-lending platform also facilitates Business Correspondence (BC) arrangements, in which the lender to originator ratio in co-lending is 100:0. However, in this case, the originator will help the lender enhance access to customers and markets by leveraging its depth of penetration.

Joint lending alliances help both parties enter new geographies, and expand the customer base, while also benefiting the customers in the long run, making it a winning proposition for all the stakeholders. The CredCo-Lend platform has a robust infrastructure to power the end-to-end loan life cycle and ensure compliance. It has a user-friendly interface, providing a seamless experience for the end-users. Apart from convenience in loan creation and helping in joint underwriting, it also provides post disbursement support, portfolio monitoring, invoicing and settlement with real-time information processing.

N.V. Shivkumar, Head of Retail Assets, Utkarsh Small Finance Bank, said, “We are excited to be a part of CredAvenue's platform for BC partnerships. With this partnership(100:0), we aim to tap the underserved population through the last mile reach of regional NBFCs/MFIs and Fintech players. CredAvenue will not only help us expand our reach; but through their end-to-end portfolio management & monitoring solutions, we will build a diverse and profitable portfolio across multiple sectors.”

Speaking on the partnership, Devarsh Mapuskar, Business Head - Co-lending, CredAvenue, said, “This marks the introduction of India’s small finance banks into the co-lending marketplace and opens opportunities further for business correspondent (BC) arrangements. Going forward, Utkarsh Small Finance Bank is expected to enhance its financial reach by partnering with multiple NBFCs/HFCs/MFIs/Fintechs, impacting thousands of customers.”

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