Srei Equipment Finance Limited, a wholly owned subsidiary of Srei Infrastructure FinanceNSE 0.54 %, has tied up with state-owned Syndicate BankNSE 0.45 % to jointly provide financing for construction and farm equipment.
Under the arrangement, Syndicate Bank would leverage on its low-cost funds and co-lend equipment loans with Srei Equipment at a mutually agreed rate, a company statement said on Thursday.
The arrangement had been done under the aegis of Reserve Bank of India (RBI) circular dated September 21, 2018, that permits banks to engage with non-banking finance companies (NBFCs) to co-originate loans for the creation of priority sector assets, the statement added.
iQuippo, a Kanoria Foundation initiative, will facilitate sourcing of loans under this programme. It will aid both Srei Equipment and Syndicate Bank in deepening their reach in construction, mining and allied equipment sector and commercial vehicles segment further. Incidentally, iQuippo is one-of-its-kind digital marketplace for construction equipment, machinery and services. The platform has been digitalising the fragmented construction equipment industry in India and aiding in the process of fair price discovery, higher asset utilisation rates and quicker pay-back period.