APN News

  • Wednesday, June, 2022| Today's Market | Current Time: 05:56:34
  • Hyderabad/Mumbai: Bank of Baroda (Bank), one of India’s leading public sector banks and named the Best Technology Bank by Indian Banks’ Association (IBA), today 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, enables Retail, MSME, Agri co-lending product offerings and increases process efficiency. The digital co-lending platform has state-of-the-art 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.

    Shri 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. Co-lending is a priority area for the Bank and we believe that this state-of-the-art platform will help to achieve significant milestones in the coming years. 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.”

    Shri Akhil Handa, Chief Digital Officer, Bank of Baroda added, “The Digital Co-Lending Platform is an agile tech-driven multi-dimensional solution that provides an end-to-end solution for the complex accounting issues which are common under co-lending. Features such as dedicated escrow management and collections mechanism, makes the platform unique and best-in-class, delivering a more efficient loan management cycle.”

    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. It enables NBFCs to access the bank’s low cost of funds while offering customers loans at a lower ROI.

    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.

    SEE COMMENTS

    Leave a Reply