In Partnership With Multiple NBFCs
Bank of Baroda co-lending platform ensures seamless integration with multiple NBFC partners
HYDERABAD/MUMBAI, May 10 (The CONNECT) – Public sector lender Bank of Baroda has announced the launch of an end-to-end Digital Platform to facilitate co-lending of loans in partnership with NBFCs.
The platform provides seamless integration between the Bank and multiple NBFC partners to strengthen, accelerate and simplify the co-lending process. The platform uses rule-based algorithms for underwriting, enables credit assessment checks, facilitates Retail, MSME, agriculture co-lending product offerings and increases process efficiency. The platform has state-of-the-art capabilities to handle both the Non-Discretionary and Discretionary models of co-lending for secured as well as unsecured products as per the latest RBI guidelines on the subject.
Vikramaditya Singh Khichi, Executive Director, Bank of Baroda said, the target is to partner with at least 10 NBFCs and build a Rs.10,000 crore co-lending loan book through the digital platform in the next two years.
Co-lending is a win-win for all the three stakeholders – customers, partners and the Bank. It provides last mile connectivity by enabling banks to reach out to new customer segments and improve the flow of credit. It enables NBFCs to access the bank’s low cost of funds while offering customers loans at a lower ROI.
Akhil Handa, Chief Digital Officer, Bank of Baroda added, the Digital Co-Lending Platform has features such as dedicated escrow management and collections mechanism, delivering a loan management cycle with improved efficiency.
Bank of Baroda has been ranked No. 1 for Digital Lending by Govt. of India based on the EASE 3.0 PSB Banking Reforms index.