Both HDFC Bank and TRU will extend Micro, Small and Medium Enterprises (MSME) business loans and gold loans under this collaboration.
Industry estimates indicate that the MSME sector has an overall credit demand of Rs 69.3 trillion, growing at a compound annual growth rate (CAGR) of 11.5 per cent. Less than 15 per cent of this demand is met by formal lending channels. TRU, which specialises in MSME lending, focuses on offering affordable credit solutions aimed at propelling the growth of small businesses.
Rohan Juneja, managing director and chief executive officer of TRU, noted, “The partnership with HDFC Bank will serve our mission where both entities will benefit from TRU’s sourcing, distribution, assessment, and collection capabilities in non-urban markets. This ensures effective deployment of capital to guarantee last-mile credit delivery.”
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.”