Co-lending is a win-win for all the three stakeholders i.e. customers, partners and the Bank.


Public sector bank Bank of Baroda on Monday announced the launch of an end-to-end digital platform to facilitate co-lending of loans in partnership with NBFCs. The platform will provide seamless integration between the bank and multiple NBFC partners to strengthen, speed up and simplify the co-lending process.

The platform uses rules-based algorithms for underwriting, enables credit evaluation checks, enables retail, MSME, agriculture co-lending product offerings and enhances process efficiency, the company said in a statement.

The digital co-lending platform has state-of-the-art capabilities to handle both option 1 (non-discretionary) and option 2 (discretionary) models of co-lending for secured and unsecured products as per the latest RBI guidelines. On the co-lending model, it added.

Vikramaditya Singh Khichi, Executive Director, Bank of Baroda said, “The digital co-lending platform will pave the way for both Bank of Baroda and our NBFC partners to enable and integrate lending to borrowers with better TAT. Co-lending is a priority area for the Bank and we are confident that this state-of-the-art platform will help it achieve significant milestones in the years to come. The bank is targeting to partner with at least 10 NBFCs and build a co-lending loan book of Rs 10,000 crore through digital platforms in the next two years.

Meanwhile, Akhil Handa, Chief Digital Officer, Bank of Baroda, said, “The digital co-lending platform is an agile technology-driven multi-pronged solution that provides end-to-end solutions to complex accounting issues that are faced by co-lenders. Features such as dedicated escrow management and collection mechanisms, make the platform unique and best-in-class, providing a more efficient debt management cycle.”

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Co-lending is a win-win for all the three stakeholders i.e. customers, partners and the bank. It provides last mile connectivity by enabling banks to reach out to new customer segments and improve credit flow. It enables NBFCs to access the bank’s low cost funds while offering loans at low ROI to the customers.

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