Co-Lending Loans: Are You Getting the Best Rate?

Banks and NBFCs are teaming up to give loans together. This means you may get cheaper interest rates from a bank even if an NBFC or fintech app processes your loan. Here's what that means for your EMI.

Here's what happened: Bank of India has opened a dedicated branch in Mumbai focused entirely on co-lending, supply chain finance, and pool loan buyouts.. Co-lending is a model where a bank and an NBFC jointly fund your loan — the bank contributes the larger share at a lower rate.. This push means more borrowers — including small business owners and salaried individuals — could access blended lower-rate loans through fintech or NBFC partners..

What you should do: Ask your NBFC or loan app if your loan is co-lent with a bank — if yes, confirm the blended interest rate you're actually being charged.. Compare your current personal loan rate against co-lending offers on platforms like GoCredit — even 1-2% less can save thousands over tenure.. If you're a small business owner, check if your supplier or buyer network uses Supply Chain Finance — it's often cheaper than a working capital loan..

Under RBI's co-lending rules, the bank must hold at least 20% of every co-lent loan. This means your loan has a regulated bank behind it — stronger protection than a pure NBFC loan.