Page 40 - Banking Finance June 2025

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Co-lending benefits banks by helping them reach untapped HDFC Bank and Apollo Finvest : HDFC Bank partnered with
markets and customers while NBFCs gain access to lower- Apollo Finvest to provide loans to small and medium
cost funds, enhancing the overall customer experience by enterprises (SMEs). HDFC Bank contributes 80% of the loan
improved personal touch and better interface. amount, while Apollo Finvest provides the remaining 20%.
This collaboration helps SMEs access funds more easily.
Examples of Co-Lending :
ICICI Bank and Indostar Capital Finance : ICICI Bank
Union Bank of India and Capri Global Capital Limited
(CGCL) : Union Bank of India has partnered with several non- teamed up with Indostar Capital Finance to co-lend to the
banking financial companies (NBFCs) for co-lending. One commercial vehicle sector. This partnership allows ICICI
notable partnership is with Capri Global Capital Limited Bank to leverage Indostar's expertise in the commercial
(CGCL). This collaboration aims to provide loans to micro, vehicle market while sharing the risk.
small and medium enterprises (MSMEs), leveraging Union Bank of Baroda and Paisalo Digital : Bank of Baroda
Bank's extensive reach and Capri Global's expertise in the entered into a co-lending agreement with Paisalo Digital
MSME sector.
to provide loans to micro, small and medium enterprises
(MSMEs). This partnership aims to enhance credit
SBFC (Small Business Finance) and ICICI Bank : One
notable co lending partnership is between SBFC (Small availability to underserved segments.
Business Finance) and ICICI Bank. This partnership allows
the two entities to join forces and provide funding to Axis Bank and Lendingkart : Axis Bank has partnered with
borrowers who may not have been able to secure loans Lendingkart to provide working capital loans to small
businesses. This partnership allows Axis Bank to leverage
otherwise.
Lendingkart's digital lending platform and extensive reach
among small enterprises.
SBI and Adani Capital : The State Bank of India (SBI), the
country's largest lender, partnered with Adani Capital, a Yes Bank and U GRO Capital : Yes Bank teamed up with U
smaller NBFC, to co-lend to farmers. In this arrangement,
GRO Capital to co-lend to MSMEs. This collaboration aims
SBI provides 80% of the loan amount, while Adani Capital
to enhance credit availability to small businesses, combining
contributes the remaining 20%. This partnership helps
farmers access funds to purchase tractors and farm Yes Bank's financial strength with U GRO Capital's sector-
implements, combining the strengths of both institutions- specific expertise.
SBI's large capital base and Adani Capital's reach to rural Kotak Mahindra Bank and InCred : Kotak Mahindra Bank
customers.
has a co-lending partnership with InCred to provide loans
Co Lending Models to the education sector. This partnership helps students
access educational loans more easily, leveraging Kotak's
financial resources and InCred's
focus on education financing.

These partnerships combine the
strengths of both banks and
NBFCs, improving credit outreach
and making loans more accessible
to various sectors.

Eligibility criteria for co-
lending
The eligibility criteria for co-lending
arrangements typically involve the
following:

36 | 2025 | JUNE | BANKING FINANCE