Arka Fincap enters into a co-lending partnership with Central Bank of India to offer loans to MSMEs
DATE: July 17, 2024
Mumbai, 17th July 2024: Arka Fincap Limited, a NBFC and part of Kirloskar Group, partners with Central Bank of India under co-lending arrangement. With this partnership, Arka will offer loans to MSMEs at competitive rates, further expand their reach across India and continue to offer convenience and a delightful experience to their customers. As part of the collaboration, Arka will originate and process loan proposals under MSME sector as per jointly formulated credit parameters and eligibility criteria and Central Bank of India will take into its books 80% of the MSME loans under mutually agreed terms. Arka will service the accounts throughout the life cycle of the loans.
Amit Kumar Gupta, Group Chief Financial Officer, Arka Fincap Limited, commented on the partnership, “This partnership aligns with our strategy to expand our retail lending portfolio. It positions us well to explore new growth opportunities and adapt to the ever-evolving financial landscape to change the story of India’s MSME sector to get ahead”
Navin Saini, Chief Business Officer – Retail & MSME, Arka Fincap Limited, said, “The co-lending partnership with Central Bank of India is a step towards our goal to fill the credit gap of MSMEs, grow our portfolio and be the first-choice NBFC in the business loan segment for the MSME sector. This partnership represents a significant step towards achieving these long-term strategic goals. The competitive rates offered would benefit the MSMEs availing the loan.”
Arka operates in four main business segments: MSME & SME lending, corporate lending, real estate and urban infrastructure financing and syndication. It offers innovative financing solutions that enables their customer’s businesses by providing them with timely growth capital. As on 31st March 2024, Arka had an AUM of INR 5,200 Cr and 31 branches spread across 13 states with the retail AUM constituting 50% of the total AUM. By 2025, it aims to reach an AUM in excess of INR 7,000 Cr and be present across 45 branches.
About Arka Fincap Limited:
Arka Fincap Limited started in 2018 as a subsidiary of Kirloskar Oil Engines Limited, growing from the intrinsic learnings of its 130-year-old legacy. Arka Fincap Limited is a customer-focused, digitally enabled, analytics driven, Non-Banking Financial Company which provides secured and unsecured financing solutions to MSMEs, SMEs, developers, and corporates.
Corporate Communications:
Megha Jamb (megha.jamb@arkaholdings.com)