Private sector bank Karnataka Bank (KBL) and non-banking financial company (NBFC) Clix Capital have entered into a strategic digital co-lending partnership through the Yubi co-lending platform. This partnership is focused on providing loans to the Indian MSME sector, which is one of the biggest contributors to India's GDP and employment growth. The agreement aligns with the Reserve Bank of India's guidelines on co-lending by banks and NBFCs to priority sectors. 

Sekhar Rao, executive director of Karnataka Bank, added that the tie-up should leverage technology and digital solutions to extend a wide range of financial products to the MSME sector seamlessly. The partnership combines the bank's low cost of funds, end-to-end digital capabilities, and expertise to offer credit facilities to this segment, along with Clix Capital's lending tech platform and robust due diligence. 

Celebrating its centenary year, the Mangaluru-headquartered Karnataka Bank offers a range of fiscal products for retail, MSME, SME, agri, and corporate segments, including trade finance, foreign exchange, remittances, and NRI services.

Speaking on the collaboration, Srikrishnan H, managing director and CEO of Karnataka Bank, said, "By this co-lending arrangement, the much-needed liquidity at affordable rates for the MSME sector will be a reality. Clix Capital and Karnataka Bank will jointly address the MSME's requirements, adding impetus to the micro-credit facilities segment, keeping in mind the sustainable economic growth for the country." 

Commenting on the co-lending agreement with Karnataka Bank, Rakesh Kaul, CEO of Clix Capital, said, "With this partnership, we will bring to the table our tech prowess and agility to understand and underwrite segments that largely remain underserved. Our joined forces will together harness the robust networks to reach a broader audience and empower MSMEs to fulfill their aspirations of seeking seamless and affordable business loans to grow." 

Co-founded by Pramod Bhasin and Anil Chawla in 2016 through the acquisition of the lending and leasing business of GE Capital, Clix Capital focuses on leveraging technology and deep analytics to offer lending solutions to India's thriving SME sector through secured and unsecured business loans, healthcare equipment finance, mortgage finance, and K–12 school financing. It is backed by AION Capital Partners, a private equity fund that is an affiliate of Apollo Global Management, LLC, which has $513 billion in assets under management globally.