 "Credit platform Yubi announces partnership with Axis Bank, Muthoot Microfin")
Yubi, a credit platform, has entered a co-lending partnership with Axis Bank and Muthoot Microfin, which provides micro loans, to provide capital “at the grassroots level of the Indian economy”.
This partnership’s goal is to improve living standards and create livelihood opportunities for underserved communities at an affordable cost and on a large scale, said Yubi in a statement.
Axis Bank will use Yubi's co-lending platform to develop a lending portfolio spanning diverse sectors, with an initial focus on microfinance institutions. Muthoot Microfin will handle sourcing and collection activities and utilise its brand recognition to assist the partnership.
"India's immense potential for growth lies in empowering every individual, especially at the grassroots level. Micro financing through co-lending partnerships is the key to unlocking this potential. With our co-lending platform, we're not just making it possible; we're making it accessible, efficient, and transformative. By joining hands with financial institutions like Axis Bank and microloan experts like Muthoot Microfin, we're enabling access to capital for those who need it most," said Gaurav Kumar, Yubi’s founder and chief executive officer (CEO).
“This partnership marks a significant milestone in our commitment to empowering the underserved communities across the nation. This innovative collaboration ensures a steady debt capital line, bringing unparalleled benefits to the end microloan borrower. As a tech-enabled initiative powered by Yubi’s co-lending platform, we anticipate reaching an unprecedented scale of efficiency, solidifying our dedication to fostering financial inclusion,” said Sadaf Sayeed, CEO of Muthoot Microfin.
Yubi said in the first nine months of FY24 its co-lending platform recorded more than 9 million transactions and grew 40 per cent year-on-year in terms of gross transaction value. The co-lending model is gaining popularity as a way for banks to diversify their portfolios and for non-banking financial companies to access cheaper funding sources, it said.