TruCap Finance Limited (TRU), a non-banking finance company dealing in gold and business loans, and HDFC Bank have entered into a co-lending partnership where TRU will leverage its Lending-as-a-Service (L-a-a-S) model to offer quality credit solutions to underserved borrowers. Under this partnership, HDFC Bank and TRU will offer MSME business loans and Gold Loans to borrowers predominantly in non-urban locations.

According to industry estimates, the MSME sector has a total credit demand of Rs 69.3 lakh crore, growing at a CAGR of 11.5% with less than 15% of the demand being catered to by formal sources. TRU is specialised in MSME lending and is engaged in providing affordable credit solutions to small business owners to drive their business growth.

“ The partnership with HDFC Bank will help to serve our mission where both HDFC Bank and TRU will gain to benefit from TRU’s sourcing, distribution, assessment & collection strengths in non-urban markets and ensure that capital is effectively deployed to ensure last mile credit delivery”, said Rohan Juneja, managing director & CEO of TRU.

TRU has cumulatively disbursed more than Rs 2,000 crore in loans to over 1.9 lakh customers to support credit inclusion of underserved businesses. With a network of more than 118 branches spread over over 50 cities in MSME clusters of West, Central, and North India, TRU aims to enable timely solutions being delivered to small businesses, whether it is to avail working capital or purchase assets to enhance their revenue, and power livelihood generation in non-metro regions.

Sumant Rampal, Group Head – Business Banking & Rural Banking, HDFC Bank said, “The partnership with TruCap helps us in expanding financial inclusion to the last mile customer and provides them with convenience, speed and affordability. This joint work is allowing us to reach customers in semi-urban and rural markets and the mini micro-segment of MSMEs. With quick approvals, competitive rates, and extended reach, this collaboration empowers more individuals and businesses to fulfill their dreams.”

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