KBL and NBFC Clix Capital Enter Co-Lending Partnership for MSME

Current Context: Karnataka Bank (KBL), a leading private sector bank, and Clix Capital, one of India’s fastest-growing new-age NBFCs, have entered into a strategic digital co-lending partnership on 16th January 2024.

• 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 collaboration leverages Karnataka Bank’s cost-effective funding, comprehensive digital capabilities, and proficiency to provide credit facilities to the specified segment.
• Paired with Clix Capital’s robust and user-friendly lending technology platform, the partnership aims to offer seamless, economical digital financing solutions.
• The agreement, signed in Bengaluru, emphasizes leveraging each other’s strengths to cater to the unserved MSME segment.
• Srikrishnan H, Managing Director & CEO, Karnataka Bank, highlighted, “Our co-lending partnership will ensure much-needed liquidity at affordable rates, contributing to the sustainable economic growth of the country.”

Question:

Q.1 What is the main focus of the partnership between Karnataka Bank and Clix Capital?
a. Providing loans to the Indian MSME sector
b. Investing in real estate
c. Developing new banking software
d. Expanding their branches across India