Axis Bank and Shriram Housing Finance Announce Partnership Under the Co-Lending Model Through Yubi 

March 31, 2023

Axis Bank, India’s third largest private sector bank and Shriram Housing Finance Limited (SHFL), a leading Affordable Housing Finance Company, today announced a strategic partnership under the co-lending model through the Yubi Co.Lend platform. Through this partnership, both the lenders will offer secured MSME (Micro, Small and Medium Enterprises) Loans and Home Loans to the middle and low-income segment borrowers based in rural and semi-urban regions.   

Axis Bank and Shriram Housing Finance Announce Partnership Under the Co-Lending Model Through Yubi 

The partnership will leverage the deep financial expertise of Axis Bank, and loan processing technology of SHFL to assess the credit profile of borrowers and provide them loans at competitive interest rates through a network of 123 branches of SHFL. This partnership will cater to potential customers who are either new to credit or untapped by larger institutions and build a secured loan book. The collaboration will leverage the tech platform, Yubi to process loans seamlessly as per the co-lending guidelines. 

Speaking on the collaboration, Mr. Munish Sharda, Group Executive & Head - Bharat Banking, Axis Bank said,'' The partnership with SHFL is aligned with the Bank’s Bharat Banking mission of driving financial inclusion in the rural and semi-urban regions in a seamless digital manner. This alliance will improve our reach, strengthen our presence in the MSME and affordable home loans segment, and augment the priority sector lending portfolio of the Bank. We are excited to grow the partnership using our digital co-lending platform and offer a superior customer experience.'' 

Commenting on the partnership, Ravi Subramanian MD & CEO, Shriram Housing Finance Limited said, “The Axis-SHFL partnership is a powerful combination. Together we will expand our reach and serve a much larger customer base for Housing and secured MSME loans, specifically targeting borrowers at the bottom of the pyramid. Through the co-lending model, we intend to channelize credit to the priority sector as we step up lending in a credit-starved economy. The co-lending model has the potential to catalyse the resurgence of India’s MSME sector and transform the priority sector and today’s announcement is yet another step in this direction.”

The collaboration between two lenders aims to cater to customers in the unorganized sector, including self-employed or salaried borrowers who have limited access to credit due to the lack of sufficient income proofs. By combining their strengths, Axis Bank and SHFL will address the credit gap faced by MSMEs and home loan borrowers by utilizing its extensive customer reach and rigorous credit underwriting and assessment tools. With a track record of serving more than 123,000 customers to date, the partnership with Axis Bank is an indication of SHFL’s commitment to the affordable housing finance space.