Mumbai, May 10 (KNN) Bank of Baroda (BoB) has announced the launch of an end-to-end Digital Platform to facilitate co-lending of loans to retail, MSME, agri in partnership with Nonbank financial companies (NBFCs).

The Bank is targeting to partner with atleast 10 NBFCs and also to build a Rs 10,000 crore co-lending loan book through the digital platform in the next two years.

The platform provides seamless integration between the Bank and multiple NBFC partners to strengthen, accelerate and simplify the co-lending process. 

It uses rule-based algorithms for underwriting, enables credit assessment checks, enables Retail, MSME, Agri co-lending product offerings and increases process efficiency. 

The digital co-lending platform has capabilities to handle both the option 1 (Non-Discretionary) and option 2 (Discretionary) models of co-lending for secured as well as unsecured products as per the latest RBI guidelines on the co-lending model.

Calling co-lending as a priority area, 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 seamlessly integrate and enable lending to borrowers with improved TAT.” 

Highlighting the benefits of co-lending Akhil Handa, Chief Digital Officer, Bank of Baroda added, “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 the flow of credit, he added.  (KNN Bureau)