A new non-banking financial company will soon start its operations and offer Citibank's consumer finance products.

Citibank is going to enter into a 50:50 joint venture with Mukesh Ambani-owned Reliance Retail with the aim to distribute the former's consumer finance products such as loans and credit cards.

The proposed joint venture is expected to work as a non-banking financial company (NBFC) with a combined investment of Rs 500 crore.

Market sources told that both parties would contribute around Rs 250 crore towards the new entity and the rest of the details are yet to be worked out.

A senior executive from Citibank said, "We have already started distributing Citibank's retail banking products through Reliance Retail. Both of us would have equal contribution to expand the business. We have invested about $62 million in the partnership."

Though the deal is not yet announced formally, sources said the joint venture would initially target Reliance Retail's large customer base, which is estimated at around 4 million.

According to the reports, the proposed JV is also expected to roll out a couple of new co-branded cards.

Earlier, Citibank has forayed into a JV with Maruti Suzuki for car finance. Reliance Capital from Anil Dhirubhai Ambani Group already offers credit cards and other personal finance products.

Consumer finance which is directly related with money lending to the people or the consumers includes loans and credit cards. It is one of the fastest-growing segments in the financial services sector.