Bank of Maharashtra ties up with LoanTap for co-lending

Bank of Maharashtra (BoM), a premier public sector bank in the countr y has entered into a strategic co-lending agreementfor MSME Loan with a Pune based NBFC (M/s LoanTap Credit Products Pvt. Ltd.) The co-lending model provides ease of loan sanctions at borrower ’s convenience through digital lending platforms, which cover end-to-end loan processing cycle without manual intervention, from on-boarding of customers to loan disbursement and monitoring. Under the co-lending model, the bank will have an exposure up to 80 per cent while the rest will be borne by the LoanTap. A S Rajeev, Managing Director & CEO opined that colending is the system introduced by the RBI in the wake of the liquidity crisis at non-banking finance companies to enhance the credit flow to the unserved and underserved sector and make available funds to the ultimate beneficiar y at an affordable cost.