Bajaj Finance ties up with Central Bank for SME Lending
Bajaj Finance and the public sector Central Bank of India on Wednesday entered into an alliance to co-finance retail and small and medium enterprises (SMEs).
Central Bank will provide an initial corpus of Rs 1,000 crore for the purpose. Rahul Bajaj, chairman of Bajaj Finance, said this was the first tie-up of its kind between a non-banking finance company and a bank.
As per the tie-up, the assets would be partially assigned to Central Bank of India on a periodic basis and the administration and servicing of these loans would be managed by Bajaj Finance, the press release stated. Bajaj Finserv’s Managing Director, Sanjiv Bajaj, has estimated the co-financing could go upto Rs 1,000 crore over the next 18 months.