Non-banking finance company (NBFC) honchos have emphasised on responsible lending practices, equitable partnerships, and data-driven underwriting approaches in fostering co-lending between banks and NBFCs.
Speaking at a panel discussion at ETBFSI NBFC Connect’24 Summit, Ashish Mehrotra, MD & CEO of Northern Arc Capital, emphasised the significance of reaching the last mile through partnerships: “As long as we are able to reach the last mile in partnership/co-lending, we bring more value to the ecosystem.” He highlighted their responsible approach to lending, stating, “We are very understated, calibrated in our approach and underwriting.”
Vipul Sekhsaria, Co-Founder & COO of Kaleidofin, distinguished between business correspondent (BC) partnerships and co-lending arrangements: “In BC, there’s a senior and junior entity, but in co-lending, there’s equal skin in the game of both.” He emphasized the importance of information symmetry in ensuring scalability.
Borrower needs
Rakesh Kaul, CEO of Clix Capital, underscored the diverse needs of borrowers and the role of data in credit underwriting: “There is no one solution that’ll solve all your needs. The data is so compelling, and with the formalization of the economy, the ability to underwrite is becoming far easier.” He highlighted the strong capital position of Clix Capital to facilitate partnerships and raise debt.
Mehernosh Tata, CEO of Edelweiss Retail Finance, stressed the importance of tailoring co-lending partnerships to specific needs: “It’s never one size fits all in co-lending. You keep looking at what the partner brings.” He emphasized the distinction between tactical and strategic partnerships based on the value each partner brings to the collaboration.
