Yubi partners with SBI to extend credit access to priority sector in India via its co-lending platform

Yubi will enable SBI to collaborate with various financial institutions and build a diverse and profitable portfolio in multiple sectors

Yubi, formerly known as CredAvenue, has partnered with India’s largest bank, the State Bank of India (SBI), to help grow the bank’s co-lending portfolio. SBI will be integrated with the largest co-lending platform in India, Yubi Co.Lend, which is trusted by the lending ecosystem that provides an end-to-end solution and enables lenders to collaborate with multiple partners with a quick one-time Application Programming Interface (API) integration. This strategic alliance aims to facilitate seamless and faster credit to the priority sector, ultimately reducing the country-wide credit gap. 

As a result of this partnership, Yubi Co.Lend will assist SBI in collaborating with an extensive base of Non-Banking Financial Companies (NBFCs), Housing Finance Companies (HFCs) and Fintechs to amp up its co-lending business. On the other hand, Yubi will also build, manage and monitor SBI’s co-lending portfolio. The platform will also ensure all compliance to enhance the user experience. 

Commenting on this strategic move, Gaurav Kumar, Founder and CEO, Yubi, said, “The path to democratising credit access for the unserved and underserved segments can be paved by fostering synergies through co-lending partnerships. We are delighted to partner with SBI and aid them in accelerating credit to the priority sectors in the country as well and deepening debt markets in India. Moreover, Yubi’s tech-enabled end-to-end co-lending infrastructure will help expand their loan portfolio across asset classes. This partnership has the potential to unlock $1 Trillion in capital for Priority Sector Lending in tier 2,3,4 cities, small enterprises, and farmers, which will go towards scaling their businesses, increased earning power, and the ability to create value for their communities and the country at large.”

On Yubi's co-lending platform, SBI can choose its co-lending partners, create its co-lending product programme, and digitally manage operations. Multiple asset classes will be covered by this model, which is consistent with the bank's portfolio approach. Given that several financial institutions have already joined the Yubi platform, SBI will be able to integrate with all of them via a single, one-time integration, saving the bank precious time and effort.

Initiated by the Reserve Bank of India, co-lending or co-origination offers a framework for cooperation between two financial institutions, such as a bank and an NBFC, to jointly fund the customer's needs. This arrangement makes the most of the strengths of both lenders by combining the low-cost fund of a bank with the local capabilities—sourcing and service experience of an NBFC—making it a win-win situation for all parties involved.