New Delhi [India], August 24 (ANI): Non-Banking Financial Company (NBFC) Piramal Finance has partnered with BLS E-Services, a digital service provider, to enhance access to formal credit for individuals and MSMEs across rural and semi-urban India.

Through this collaboration, customers in Tier 2, 3, and 4 locations will be able to access a range of financial products--including home loans, unsecured business loans, used car loans, and personal loans--via BLS E-Services' trusted network of more than 144,000 touchpoints nationwide.

Jairam Sridharan, Managing Director, Piramal Finance Ltd, said, 'Our partnership with BLS E-Services allows us to tap into their strong nationwide network across regions and open new financial opportunities. We're excited to take this initiative forward, support more families and small businesses in achieving their goals, and contribute meaningfully to the economic growth of Bharat.'

'Through this partnership, we aim to serve the masses and cater to the financial needs of underserved MSMEs. The objective is also to empower village entrepreneurs by providing them with access to finance, ultimately creating a more financially inclusive society nationwide. We're expanding our business model to reach the most remote and underserved areas, driving financial inclusion in line with the government's inclusivity goals,' said Shikhar Aggarwal, Chairman, BLS E-Services Ltd.

Piramal Finance will leverage the 'phygital' model and the local presence of BLS E-Services centres. This partnership will help new borrowers and marginalised groups, promote financial inclusion, and drive steady growth in credit provision. Customers can conveniently submit loan applications at nearby centres with minimal paperwork, enhancing access to financial services.

With this partnership, we aim to reach over 1 million of the unserved rural population by 2030, added Aggarwal.

The RBI's Report on Trend and Progress of Banking in India for FY 2023-24 notes a steady rise in credit growth beyond metro areas. Rural India's share of outstanding bank credit increased from 6.7 per cent in 2019 to 7.8 per cent in 2024, while semi-urban areas grew from 10.5 per cent to 13.8 per cent. Private banks are also expanding their rural footprint--44 per cent of all new branches opened in FY24 were in rural and semi-urban locations.

The report also highlights a notable shift in banking expansion trends. Private sector banks, which were traditionally focused on metropolitan markets, are now increasingly establishing a presence in rural India. In FY24 alone, private banks opened 66 per cent of all new branches, with 44 per cent of these located in rural and semi-urban areas.

The RBI noted that this expansion is being supported through a growing network of physical bank branches and banking correspondents, further strengthening financial inclusion in underserved geographies. (ANI)