Public sector moneylender Bank of Baroda on Monday announced the launch of its end-to-end digital platform for co-lending of loans in partnership with non-banking financial companies (NBFCs).
The platform uses rule-based algorithms for underwriting, enables credit assessment checks, enables retail, MSME, and agri co-lending product offerings contributions, and increments process efficiency, the bank said. The platform can handle both non-discretionary models of co-lending for secured or unsecured credit according to the latest guidelines by the Reserve Bank of India (RBI) on the co-lending model.
Bank of Baroda at present has co-lending tie-ups with non-banking financial companies (NBFCs) including U GRO Capital and Paisalo, and housing finance organizations Edelweiss Housing, Centrum Housing Finance, etc.
“During the testing phase of the platform, we had restricted with U GRO Capital. There are around four more players ready to go to get on board the platform. Up until this point, there was no end-to-end digital platform for co-lending in India, everything was done physically for sure was being accounted for as co-lending was actually direct assignments tasks,” Akhil Handa, Chief Digital Officer, Bank of Baroda told Financial Express Online.