
TruCap Finance Limited (TRU), a non-banking finance firm, and HDFC Bank have formed a co-lending alliance on Thursday, aiming to provide quality credit solutions to underbanked borrowers, primarily in non-urban areas. The collaboration will focus on micro, small, and medium enterprises (MSME) business loans and gold loans, responding to the significant demand in the MSME sector, which is currently estimated at Rs 6.93 million crore (Rs 1 crore = $120,289) and growing at an annual rate of 11.5%.
Despite the high demand, less than 15% is being met by formal lending institutions. TRU, with its expertise in MSME lending, is committed to providing affordable credit solutions to stimulate the growth of small businesses. The company has already disbursed over Rs 2,000 crore in loans to more than 190,000 customers, supporting credit inclusion of underserved businesses.
The co-lending partnership aims to capitalize on TRU’s strengths in sourcing, distribution, assessment, and collection in non-urban markets. "This strategy will ensure effective capital deployment for last-mile credit delivery," said Rohan Juneja, TRU's managing director&CEO.
TRU operates through a network of over 118 branches across more than 50 cities in the MSME clusters of West, Central, and North India. The company's mission is to boost revenue generation and livelihood creation in non-metro regions by providing timely solutions to small businesses for working capital or asset acquisition.
Sumant Rampal, Group Head – Business Banking&Rural Banking at HDFC Bank, emphasized the partnership's role in extending financial inclusion to the last mile customer. The collaboration promises quick approvals, competitive rates, and broader reach. Consequently, it empowers more individuals and businesses in semi-urban and rural markets, as well as the mini micro-segment of MSMEs, to realize their aspirations.
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