Axis Bank and Piramal Finance have partnered to establish a co-lending business aimed at extending loans to underserved segments in India. This partnership aims to reach middle and low-income borrowers who lack access to traditional banking services, as well as to expand financial inclusion into rural and semi-urban areas beyond major cities.
The newly established partnership will facilitate reaching middle and low-income borrowers in rural and semi-urban areas who are either new to credit or have not been served by larger institutions before.
Jairam Sridharan, Managing Director, Piramal Capital & Housing Finance said, “We are pleased to announce our co-lending partnership with Axis Bank, a leading financial institution in the nation. This collaboration underscores our mutual commitment to providing credit to underserved markets. By leveraging Axis Bank’s expansive network and Piramal Finance’s deep reach, we are well positioned to penetrate deeper geographies across Bharat. Together, our shared goal is to enhance accessibility to formal credit, drive growth, and realize the aspirations of customers across Bharat.”
The partnership will capitalise on the strengths of both financial institutions: Axis Bank brings deep expertise in credit assessment, while Piramal Finance provides advanced loan processing technology for efficient application processing.
The partnership between Axis Bank and Piramal Finance targets customers in the informal sector, such as self-employed individuals or salaried workers with limited access to credit due to insufficient income documentation. By leveraging their strengths, including extensive customer reach and robust credit underwriting tools, the collaboration aims to bridge the credit gap for MSMEs and home loan seekers. Piramal Finance’s extensive customer base underscores its dedication to affordable housing finance, as demonstrated by this partnership with Axis Bank.
The collaboration between Axis Bank and Piramal Finance represents a strategic initiative aimed at closing the credit gap in India. Through their combined expertise and extensive reach, they seek to empower diverse segments with enhanced access to financial products and services.