The reasons include lack of technological integration, different risk perceptions on the part of lending partners (banks and NBFCs), and bigger NBFCs being slow in accepting the model, said experts. Colending happens when multiple lending partners enter into an arrangement to provide loans to priority sectors like micro, small, and medium enterprises (MSMEs).
In colending, the RBI-mandated minimum 20 per cent credit risk by way of direct exposure will be on the NBFC's books till maturity and the balance will be on the bank's books.
This story is from the July 01, 2024 edition of Business Standard.
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This story is from the July 01, 2024 edition of Business Standard.
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