Satin Creditcare Network experienced a 5 percent surge in its shares, later retracting to trade in the red on December 29. The microfinance institution sealed a significant master agreement with Karnataka Bank for co-lending loans to microfinance borrowers through a tranching co-lending module.
Under the agreement, Satin Creditcare Network will serve as the service provider, managing collections and monitoring, while the funds will be disbursed in an 80:20 ratio, with the bank contributing the larger share. The collaboration adheres to the RBI’s guidelines for lending to the priority sector, ensuring the microfinance loans stay within prescribed limits.
The strategic move aims to capitalize on the collaborative strength of banks and NBFCs, providing affordable credit to both existing and new customers of Satin Creditcare Network.