Karnataka Bank partners with Northern Arc Capital to offer financial solutions to retail borrowers

Karnataka Bank has signed an MoU with Northern Arc Capital, a diversified NBFC and a financial services platform, to offer customer-centric financial solutions to retail borrowers. 

Enabling seamless connection for the bank

The nPOS, Northern Arc’s technology platform for co-origination, co-lending and pool buy-out aims to enable Karnataka Bank to seamlessly connect with multiple originators for loan origination, underwriting, disbursement, and collection, along with interactive dashboards, proactive nudges, and advanced reconciliation abilities.

Digital onboarding of NBFCs

The partnership will also enable the digital onboarding of various NBFCs by Karnataka Bank. The move will help the the bank to increase its lending capacity and expand its customer base, particularly focusing on better consumer outreach. 

Co-lending: A big focus

Srikrishnan H, Managing Director & CEO, Karnataka Bank, said that, “Karnataka Bank’s arrangement with Northern Arc through the platform of NACL (nPOS), is very strategic considering our aspirations to partner with multiple Fintechs. We are looking at multiple areas to collaborate and co-lending is a big focus to grow our Advances book. The relationship with Northern Arc will assist us in onboarding various NBFCs and ensuring last mile integration beyond our branch serving areas.”

What does Northern Arc Capital do?

Northern Arc is a diversified financial services platform set up primarily with the mission of catering to the diverse retail credit requirements of the under-served households and businesses in India.

Since 2009, The firm claims to have facilitated the financing of over Rs 1.50 trillion that has impacted over 80.59 million lives across 682 districts, 28 states and seven union territories. 

It is focused in six sectors, including MSME financing, Microfinance, Consumer Finance, vehicle finance (commercial vehicle, two-wheeler and EV finance), affordable housing finance and Agriculture finance. It is also focusing on the climate and renewable financing sector.

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