HDFC Bank partners with Davara KGFS for Co-lending Loans

Current Context: Co-lending partnership between HDFC Bank and Dvara KGFS for micro loans. This is a recent development that aims to provide capital to micro business units operating primarily in the unorganised sector across 10 states in India.

• Dvara KGFS is a Chennai-based NBFC that focuses on rural lending and financial inclusion.HDFC Bank is one of the largest private sector banks in India with a strong presence in urban and semi-urban areas.
• The co-lending partnership will leverage the strengths of both entities to reach out to micro enterprises that have limited access to formal sources of finance.
• The co-lending model (CLM) is a regulatory framework that enables banks and NBFCs to collaborate in providing joint loans to end borrowers. It helps banks to create a scalable priority sector lending (PSL) portfolio and offer loans to MSMEs at competitive rates.
• It also helps NBFCs to leverage their distribution networks in regions with limited banking presence and cater to creditworthy customer segments that struggle to access formal banking credit.

Question:

Q.1 What is the name of the NBFC that HDFC Bank partnered with for co-lending loans to micro enterprises?
a. Bajaj Finserv
b. Muthoot Finance
c. Dvara KGFS
d. L&T Finance