United Bank and Srei Equipment partner to offer MSME, retail loans

United Bank of India and Srei Equipment Finance Limited have partnered to offer loans to MSMEs and retail customers under a co-lending arrangement.

The NBFC and the bank jointly organised 'Loan Utsavs' across 20 cities including Delhi, Mumbai, Hyderabad, Ahmedabad, Pune, Nagpur, Jaipur, Haldia, Durgapur, Ranchi, Keonjhar, Bolangir, Patna, Vijaywada, Rajkot, Chandigarh, Karnal, Udaipur, Lucknow, and Bhopal, Srei Equipment said in a release.

The loans were offered to MSME sector and retail customers against purchase of construction equipment at affordable EMI options. Loans for value of up to 90 per cent of the equipment were offered for tenure of up to five years, while a moratorium of 30-60 days was also awarded depending on the loan structure and size, it said.

Devendra Kumar Vyas, Managing Director, Srei Equipment Finance, said,

"This joint initiative was aimed at fulfilling the government's vision of making credit available to MSME and retail customers at affordable cost."

Ashok Kumar Pradhan, MD and CEO, United Bank of India, said, "The conduct of joint Loan Utsavs will provide an opportunity for us to increase our customer base. With SREI, we have now successfully done Loan Utsav in 20 locations, which was attended by leading equipment manufacturers, dealers, and customers who got on the spot approvals for their equipment needs. Over the last 9-10 months we are successfully building the portfolio."

United Bank was in the news this August when Finance Minister Nirmala Sitharaman announced four new set of mergers -- Punjab National Bank, Oriental Bank of Commerce, and United Bank of India will combine to form the nation's second-largest lender; Canara Bank and Syndicate Bank will merge; Union Bank of India will amalgamate with Andhra Bank and Corporation Bank; and Indian Bank will merge with Allahabad Bank.

Oriental Bank of Commerce and United Bank merger will merge into Punjab National Bank to create a bank with Rs 17.95 lakh crore business and 11,437 branches, Sitharaman said.

ALSO READ

PSU banks to introduce home, auto loans on 59-minute MSME loan portal