Central Bank inks pacts with Protium Finance, lncred Fin to offer loans

State-owned Central Bank of India has forged co-lending partnerships with Protium Finance and lncred Financial Services to offer loans to MSME borrowers.

The partnerships will provide greater expansion of portfolio by the bank and to these players, the bank said on Friday.

The state-owned lender said that Protium Finance will originate and process MSME proposals under the priority sector as per jointly formulated credit parameters and eligibility criteria and Central Bank of India will take into its books 80 per cent of the MSME priority sector loans under mutually agreed terms.

"Protium Finance Limited will service the loan account throughout the life cycle of the loan. The co-lending arrangement is expected to help both the entities...as well as help expand reach across India," the bank said in a regulatory filing.

Protium Finance has a branch network across 11 states and an AUM of 1,671 crore as of July 31, 2022, with a customer franchise at 1,08,447.

Likewise, Incred Financial Services will originate and process MSME loans under priority and take into its books 80 per cent of such loans. IFSL will service the loan account throughout the life cycle of the loan.

With branches across 9 states, Incred Financial Services offers consumer loans, education loans and MSME lending.