Central Bank of India announced a strategic co-lending partnership with Vastu Housing Finance Corporation Limited to offer Micro, Small, and Medium Enterprises (MSME) loans at competitive rates, subject to regulatory guidelines. This partnership aims to expand the loan portfolio of both entities and improve their reach across the country.
Vastu Housing Finance Corporation, a non-deposit-taking housing finance company registered with the National Housing Bank, specializes in providing mortgage solutions to underserved customers. As of September 30, 2024, the company’s assets under management (AUM) stood at ₹7,990 crore, with a network of 181 branches across 14 states and 60,000+ customers.
Under this arrangement, Vastu Housing Finance will originate and process MSME loan proposals as per jointly formulated criteria, while the Central Bank of India will assume up to 80% of the loans on mutually agreed terms. Vastu Housing Finance will continue servicing the loans throughout their lifecycle.
This partnership is expected to provide a more streamlined and convenient loan experience for MSME borrowers and enhance financial inclusion across India.