MAS Financial Services announced on Tuesday that it has entered into a strategic co-lending partnership with Bank of Maharashtra for loans to micro, small and medium enterprises (MSMEs).
The co-loan partnership will help MAS Financial expand its customer base and expand the flow of credit to the vast unserved and underserved markets using its strong footprint across India. The NBFC further said the trade deal will grow steadily and more products will be introduced to serve the MSME segment.
Under the agreement, MAS Financial will initiate and process loans to MSME borrowers in accordance with jointly formulated credit parameters and eligibility criteria and Bank of Maharashtra will take into account mutually agreed loan terms.
The partnership is subject to compliance laws, including applicable guidelines issued by RBI.
MAS Financial Services is a Gujarat-based NBFC with over two decades of business operations. The company’s business and finance products are primarily focused on middle and low-income customer segments spread across urban, semi-urban and rural areas, including the formal and informal sector.
The NBFC reported a 12.4% increase in consolidated net profit to Rs 39.72 crore on a 2.6% increase in total income to Rs 165.61 crore in Q2 FY22 compared to Q2 FY21.
MAS Financial shares were trading down 0.81% at Rs 657.95 while Bank of Maharashtra shares were up 0.51% at Rs 19.60 on BSE.
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