Trucap, Shivalik Small Finance Bank Partner Gold Loan Origination Under BC Model

Trucap Finance and Shivalik Small Finance Bank partnered for the sourcing and managing retail gold loan assets.

With a loan book of over Rs 500 crore, TruCap aims to build social capital by providing small-ticket Gold loans and business loans to its MSME borrowers. Trucap Finance, acting as Business Correspondent (BC) for Shivalik Small Finance Bank will originate new business and help in scaling up the customer base.

Interface Ventures, a boutique investment, incubation, and advisory services platform promoted by financial services veteran Karan Desai, has worked as the sole advisor to Trucap for this partnership.

Shivalik Small Finance Bank is the first Small Finance Bank in India to have transitioned from an urban cooperative bank with 24 years of experience in offering retail banking products and services.

Shivalik has recently completed its maiden equity raise of over Rs. 100 crores from marquee investors including Accel, Quona Capital and Bharti AXA Life Insurance as is it aims to become the go-to bank for small businesses and retail customers. The bank’s cloud-based architecture provides the bank with unmatched agility to effectively manage scale and power its growth, and is live on all retail payment platforms.

Rohanjeet Singh Juneja, MD and CEO of Trucap Finance, said that Trucap has a proven track record of working in close collaboration with reputed financial institutions to grow its asset base in a capital-efficient and risk-mitigated manner. “Shivalik SFB is a fast-growing new-age bank, and all of us at Trucap are excited about the potential scale to which we can build this partnership over the next 3-5 years”. Trucap already has a substantial co-lending partnership for MSME gold loans with Central Bank of India.

“Shivalik aims to reach MSMEs and underserved retail customers of ‘Bharat’ through tech- driven innovations and strategic partnerships. We believe there is significant growth potential as small business and retail customers adopt digital banking. The collaboration with Trucap will help boost the bank’s distribution reach among the small business segment, leveraging the branch network of the NBFC. Serving the needs of MSME customers in collaboration with partners like Trucap who have sourcing expertise in a specialised product segment is a core part of the bank’s growth strategy over the next few years” said Anshul Swami, Managing Director and CEO of Shivalik Small Finance Bank