#colending

Why NBFCs Need a Co-Lending Ready Platform

NBFCs are reshaping the financial landscape by offering innovative solutions for businesses and individuals. Explore how they drive inclusion and growth.

Master the Complexity of Co-Lending

The Co-Lending Model (CLM) is reshaping how NBFCs and fintech lenders scale. More partnerships. More capital access. Faster growth.

But behind that growth lies one big challenge: 👉 Operational complexity

Why Co-Lending Gets Complicated

When multiple lenders come together on a single loan, things are no longer simple.

You’re not just managing a borrower—you’re managing an ecosystem:

Different repayment structures across partners

Split cash flows and payout calculations

Disbursement, servicing, and collections across entities

Compliance and reporting with zero room for error

Traditional systems weren’t built for this.

The Real Problem: Lifecycle Fragmentation

Most lenders try to manage co-lending with disconnected systems— LOS in one place, LMS in another, reconciliation in spreadsheets.

That’s where things break:

Delays in settlements

Errors in partner payouts

Lack of real-time visibility

Compliance risks

The Shift to Unified Lending

To scale co-lending, lenders need to move from managing loans → orchestrating lifecycle

Modern platforms are solving this by bringing everything together in one system.

If you want to see how this is structured in practice, this breakdown is useful: 👉 https://www.allcloud.in/co-lending

What Actually Matters

For co-lending to work at scale, your system must handle:

✔ Complex repayment logic across partners ✔ Automated reconciliation and settlements ✔ Real-time visibility across the entire loan lifecycle

The Bottom Line

Co-lending isn’t just a partnership model. It’s an operational model.

And the lenders who win are not the ones who partner more— but the ones who manage complexity better.

Lending is no longer a single-player game. As credit demand grows across segments like MSMEs, vehicle finance, and affordable housing, lenders are increasingly turning to co-lending partnerships to scale faster while managing risk more effectively.

But while co-lending opens new opportunities, it also introduces operational complexity.

Multiple stakeholders. Shared loan structures. Parallel systems. Continuous reconciliation.

Without the right technology, managing co-lending can quickly become inefficient.

The Real Challenge Behind Co-Lending

At its core, co-lending requires coordination between originators and investors across the entire loan lifecycle. This includes:

Loan sourcing and underwriting

Fund allocation and disbursement

Repayment tracking and collections

Revenue sharing and reconciliation

Many lenders still rely on disconnected systems to manage these processes. This often leads to delays, data mismatches, and increased operational risk.

Why Technology is Critical

To make co-lending work at scale, lenders need a system that connects everything—without adding complexity.

A modern co-lending platform should:

Integrate with existing systems without disruption

Automate loan splits and funding structures

Enable role-based access for all partners

Provide real-time visibility into loan performance

Ensure compliance with regulatory requirements

When these elements come together, co-lending becomes not just manageable—but scalable.

Moving Toward a Unified Approach

The shift today is toward unified lending platforms that bring origination, servicing, and partnership management into a single system.

Instead of stitching together multiple tools, lenders are adopting platforms that:

Centralize all agreements and workflows

Reduce manual intervention

Improve accuracy across systems

Enable faster decision-making

This approach helps lenders focus less on operations—and more on growth.

The Bigger Opportunity

Co-lending is not just about sharing loans. It’s about expanding access to credit while maintaining control and efficiency.

For lenders, the opportunity lies in building systems that can handle complexity without slowing down operations.

Because in today’s lending landscape, the winners will not just be those who lend more—but those who can manage partnerships better.

Learn More

Have you ever found it difficult to get a loan because of tough eligibility requirements? That’s where co-lending can help—it’s a joint lending approach that makes it easier for more people to access credit.

What is Co-Lending?

Co-lending is a loan model where banks and non-banking financial companies (NBFCs) team up to offer loans together. In this partnership, NBFCs handle the customer-facing work, while banks provide funds at lower costs. As a result, borrowers benefit from competitive

How Does It Work? 

The bank and the NBFC contribute jointly to the loan amount in a co-lending arrangement. The bank typically funds 80% of the loan, while the remaining 20% is sourced from the NBFC. The NBFC looks after customer acquisition, service delivery, and collections, thereby simplifying the borrowing process for customers. As in conventional lending, the borrower repays the loan in equal structured installments. 

Why Choose Co-Lending? 

When it comes to individuals and small businesses that do not meet the requirements imposed by traditional banks, co-lending fills the void. It offers competitive interest rates, faster processing, and wider accessibility, particularly for underserved borrowers. If you are a small business owner or an individual with poor credit history, co-lending should change the game in relation to financial support. 

Final Thoughts, 

U GRO Capital: MSME loans jump 2.5X to over Rs 3,000 crore in FY22; to disburse Rs 5,000 crore loans this year

Credit and Finance for MSMEs: MSME loans disbursed via small business lending platform U GRO Capital have jumped 2.5X from Rs 1,278 crore in FY21 to Rs 3,138 crore in FY22. According to an exchange filing by the company on Tuesday, Rs 963 crore loans were disbursed during Q4 FY22, up 114 per cent from Q4 FY21, but down 8.5 per cent from Rs 1,053 crore loans disbursed during Q3 FY22, indicating…