Co-lending - NewNerve

Non-banking finance companies (NBFCs) are at the forefront of financial inclusion, bridging gaps in credit access for underserved segments. In recent discussions at the ETBFSI NBFC Connect’24 Summit in Chennai, industry leaders underscored the importance of responsible lending practices and equitable partnerships in co-lending arrangements with banks. Responsible Lending Practices Ashish Mehrotra, MD & CEO of Northern Arc Capital, emphasized the significance of reaching the last mile through partnerships. He stated, “As long as we are able to reach the last mile in partnership/co-lending, we bring more value to the ecosystem.” This approach ensures that credit reaches even the most remote borrowers. NBFCs adopt a calibrated and responsible underwriting process. T...

The co-lending model has emerged as a significant innovation in the Indian financial landscape, aiming to bridge the credit gap and promote financial inclusion. This model involves collaboration between banks and non-banking financial companies (NBFCs), leveraging their respective strengths to offer wider access to credit for underserved segments. Stakeholders and their involvement: Banks: Contribute their robust risk management expertise, regulatory compliance, and access to low-cost funds. They typically originate the loan and conduct due diligence on borrowers. NBFCs: Bring their domain expertise in specific sectors, strong customer relationships, and agility in loan processing. They often handle customer acquisition, credit assessment, and loan servicing. Borrowers: Benefit...

Tag: Co-lending

NBFC Leaders Advocate Responsible Lending and Equitable Co-Lending with Banks

Co-lending Model: A Collaborative Approach to Financial Inclusion in India, 2024