Co-Lending Boom: Are You Getting Cheaper Loans?

Banks like Bank of India are now partnering with NBFCs and fintechs to give you loans faster and cheaper. This 'co-lending' model is growing fast — and it could mean better loan deals for salaried workers and small business owners.

Here's what happened: Public sector banks are setting up dedicated hubs to manage co-lending, supply chain finance, and invoice-based lending under one roof.. Co-lending pairs a bank (providing ~80% of funds at low cost) with an NBFC (providing ~20%), so borrowers get blended interest rates cheaper than pure NBFC loans.. Supply Chain Finance and TReDS platforms are being integrated, helping small vendors and MSMEs get faster working capital against unpaid invoices..

What you should do: Ask your lender if your personal or business loan is co-originated — co-lent loans often carry 2–4% lower rates than standalone NBFC loans.. If you run a small business, register on TReDS (Trade Receivables Discounting System) to convert unpaid invoices into instant working capital.. Compare your existing NBFC loan rate against co-lending offers from fintech platforms like Stashfin, Kissht, or Prefr that partner with PSU banks..

Under RBI's co-lending model, the bank must hold at least 20% of each loan — this means tighter underwriting and lower fraud risk for you as a borrower compared to pure NBFC loans.