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TruCap, HDFC Bank tie-up for underserved MSME borrowers

September 22, 2023

TruCap, HDFC Bank tie-up for underserved MSME borrowers
TruCap Finance Limited (TRU) and HDFC Bank, on Thursday, commenced business under a co-lending partnership where TRU will leverage its Lending-as-a-Service (L-a-a-S) model to offer quality credit solutions to underserved borrowers, primarily in non-urban locations.

Both HDFC Bank and TRU will extend Micro, Small and Medium Enterprises (MSME) business loans and gold loans under this collaboration.
 
Industry estimates indicate that the MSME sector has an overall credit demand of ₹69.3 trillion, growing at a compound annual growth rate (CAGR) of 11.5 per cent. Less than 15 per cent of this demand is met by formal lending channels. TRU, which specialises in MSME lending, focuses on offering affordable credit solutions aimed at propelling the growth of small businesses.
 
Rohan Juneja, managing director and chief executive officer of TRU, noted, “The partnership with HDFC Bank will serve our mission where both entities will benefit from TRU’s sourcing, distribution, assessment, and collection capabilities in non-urban markets. This ensures effective deployment of capital to guarantee last-mile credit delivery.”
 
TRU has already disbursed over ₹2,000 crore in loans, aiding more than 190,000 customers and contributing to the credit inclusion of underserved businesses. The company’s expansive network includes more than 118 branches scattered across over 50 cities in the MSME clusters of West, Central, and North India. This extensive presence enables TRU to deliver timely credit solutions to small businesses for varied needs, such as availing working capital or purchasing assets, thereby enhancing revenue and livelihood generation in non-metro regions.
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