YubiCo.Lend is one of India’s largest co-lending platforms that caters to the financing and credit needs of the MSME sector. On Tuesday, it announced that it had recorded over 3.5 million transactions in FY 22-23. It saw a year-on-year growth of 375 percent in its gross transaction value and 250 percent in volume. Moreover, secured SME loans and unsecured SME loans grew by 290 percent and 158 percent, respectively, in the fourth quarter of FY23.
Co-lending has grown in popularity in the country, allowing banks to diversify their portfolios. It also allows NBFCs to access cheaper funding sources, which leads to lower risk exposure and, eventually, reduced cost of funds.
This is great news for MSMEs because co-lending platforms can answer the question of the credit gap seen in this industry. More importantly, co-lending benefits both parties, and smaller NBFCs can now broaden their access and increase operations.
