SIDBI Partners with C2treds and UGRO Capital to Enhance MSME Loan Facilitation

SIDBI has collaborated with C2treds and UGRO Capital to provide enhanced liquidity and loan facilitation for the MSME sector in India. The partnership aims to expedite credit flow and support the growth of small and medium enterprises by leveraging advanced financial platforms and regulatory frameworks.

SIDBI has entered into a strategic partnership with C2treds and UGRO Capital to facilitate loans for the MSME sector.

C2treds, which provides liquidity to MSMEs within 24 hours through an online bidding process, was onboarded by SIDBI, according to a release from C2FO.

C2FO, an on-demand capital platform, offers fast and flexible low-cost capital access to nearly 2 million businesses worldwide.

'This collaboration aims to improve liquidity for MSMEs at competitive interest rates,' stated the release.

C2treds operates under the RBI-regulated Trade Receivables Discounting System (TReDS), enhancing invoice discounting support for MSMEs.

'As the apex MSME promotion institution, SIDBI is committed to increasing credit flow to MSMEs. TReDS is an effective tool for prompt realization of MSMEs' receivables and SIDBI is onboarded on all operational TreDS platforms,' said Prakash Kumar, DMD, SIDBI.

Basant Kaur, the Country Head of C2FO India, emphasized that SIDBI's participation on the C2treds platform will significantly enhance efforts to support MSME growth.

UGRO Capital also announced a co-lending partnership with SIDBI, established under the RBI’s co-lending framework to boost priority sector lending.

'This collaboration reflects our commitment to financial inclusion and supporting MSME growth across the nation,' remarked Shachindra Nath, founder and managing director of UGRO Capital.

UGRO Capital has extended bespoke finance solutions to over 78,000 MSMEs in India.