🛑 Co-Lending in India – RBI Rules You Must Know Before Borrowing
📅 Updated: June 2025 | 📜 RBI-Compliant Co-Lending | 🤝 NBFC + Bank Partnership Model | ⚡ Powered by Vizzve Financial
🔍 What Is Co-Lending?
Co-lending is a partnership between an NBFC and a Bank to jointly lend money to borrowers. It helps expand credit access to underserved segments while sharing the loan risk.
In 2021, the Reserve Bank of India (RBI) rolled out a co-lending framework to ensure transparency, borrower awareness, and ethical lending practices.
✅ Key RBI Co-Lending Guidelines (2025)
| RBI Mandate | Explanation |
|---|---|
| 🔍 Full Disclosure to Borrowers | NBFCs must clearly disclose the names of both lending entities involved (NBFC + Bank) to the borrower. |
| 💼 Joint Loan Agreement | Borrowers should receive a single loan agreement showing each party’s share in the loan, interest rate, and terms. |
| 🔄 Loan Servicing by NBFC | The NBFC typically services the loan, but it must mention the bank partner’s role clearly. |
| 📝 Uniform Interest Disclosure | The final interest rate charged must be transparent and agreed upon upfront by all parties. |
| 🧾 Reporting & Audit Compliance | NBFCs must maintain a full audit trail and data sharing with the bank for compliance with RBI norms. |
🤔 Why Co-Lending Transparency Matters
Thousands of borrowers have unknowingly signed up for co-lending loans without knowing who their actual lender was. This causes:
Loan recovery confusion
Data misuse
Double interest or fees
That’s why RBI’s new rules mandate strict co-lender visibility and borrower agreement.
🔐 Vizzve Financial – 100% Transparent Co-Lending Platform
At Vizzve Financial, we follow RBI’s co-lending oversight norms fully:
✅ Clear mention of both NBFC and bank co-lenders
✅ Borrower receives a digital co-lending agreement
✅ No hidden rates or partner ambiguity
✅ Quick processing via RBI-approved lenders
🎯 Empowering borrowers with clarity and trust
📌 Borrower Checklist Before Accepting a Co-Lending Loan
☑️ Are both lender names clearly visible?
☑️ Have you received a digital loan agreement?
☑️ Is the rate of interest and repayment structure disclosed?
☑️ Do you know who will handle EMI recovery?
If “No” to any → Do NOT accept the loan.
📢 RBI’s Message to NBFCs & Fintechs
"Digital lenders must ensure borrowers are informed of the co-lending structure and that loan agreements transparently reflect the roles of all parties involved."
— RBI Guidelines on Digital Lending
🧠 Conclusion: Borrow Smart with Clarity
RBI’s co-lending guidelines protect you from confusion, hidden charges, and lender ambiguity. With platforms like Vizzve Financial, you get full transparency, instant digital agreements, and support throughout your loan journey.