New Delhi, Feb 18 (PTI) Bank of Maharashtra and supply chain financing platform Vayana Network have forged a partnership to cater to the short-term funding needs of medium and small enterprises in the country.
Under the partnership, Vayana and Bank of Maharashtra will help meet the short-term credit requirements of dealers and vendors of reputed corporates through the 'Mahabank Channel Financing Scheme'.
'Vayana Network's proprietary tech platform will help to digitise the transactions of supply chain financing, while the market services will help to increase penetration in the under-served MSME segment,' Vayana said in a statement on Thursday.
The partnership with Vayana Network has helped the bank launch its digital channel financing solution for micro, small and medium enterprises (MSMEs), said A S Rajeev, MD & CEO of Bank of Maharashtra.
'Through this partnership with Vayana, we look forward to offering a fully digital financing experience to our MSME customers, suppliers and distributors of leading corporates,' Rajeev said.
Bank of Maharashtra Executive Director Hemant Tamta said MSMEs are the backbone of the Indian economy, and the bank is fully committed to supporting their recovery and growth in a post-pandemic world.
'Easy and affordable access to working capital is critical to make supply chains resilient and to boost the mission of Atmanirbhar Bharat.
'The tie-up with Vayana has enabled rapid go-to-market for the bank, and we look forward to adding a robust portfolio within our MSME business through the channel financing scheme,' he said.
Vayana Network is one of India's largest supply chain finance (SCF) platforms and has enabled over Rs 45,000 crore (USD 6 billion) in trade finance for 300 supply chains in 25 different industries.
Vayana Network founder and CEO Ram Iyer said, 'Supply chain finance or trade finance has become a critical vehicle for affordable MSME loans. It has especially gained more traction in the post-COVID-19 era, as both corporates and their MSME supply chains aim to streamline their working capital cycles and liquidity.' He added that at this juncture, MSMEs are looking to rebound in 2021, and the ease to access finance is the need of the hour. PTI KPM HRS hrs