BC-MSME Loans

Banking correspondent MSME business loans refers to a financial service model that combines the functions of a banking correspondent and NBFC to provide basic banking and financial services to specifically for small retail enterprises, micro-entrepreneurs and underserved communities, particularly in rural and semi urban areas.

Shiksha Finance, as a Banking Correspondent (BC) for Federal Bank, facilitates the extension of MSME loans, leveraging its distribution network and market reach to expand access to formal credit and promote greater financial inclusion.

Through this partnership, Federal Bank can extend its reach to underserved and emerging markets, while Shiksha Finance can leverage its customer network, distribution capabilities, and MSME lending expertise to support loan origination and servicing. The partnership also enables Shiksha Finance to diversify its service offerings, strengthen its market presence, and create additional revenue opportunities