Co-lending refers to the coming together of two lending firms to distribute joint loans to the borrowers. You can partner with other Non-Banking Financial Companies (NBFC) through Cashfree Payments' Co-Lending program and expand your pool of borrowers. The partnership creates a relationship where both parties benefit in different ways.

Why Cashfree Payments' Co-Lending

Our solution for launching and managing the co-lending journey is to set up an escrow account with complete API control for the originator NBFC. We allow seamless access and reports for partner NBFCs.

  • Manage multiple NBFC/ bank partnerships with respect to recurring payments, disbursals, and limit management.
  • Enable disbursements, repayments, and co-lending seamlessly through our APIs.
  • Onboard trusted borrowers after successful identity verification with our Verification Suite to banish fraud.
  • 100% RBI and DLG compliant digital lending suite.

Benefits of Co-Lending

Reduce risks

Sharing of risk between the lenders is the primary benefit of co-lending. It reduces the risk individually and makes the loan more attractive.

Increased lending capacity

Partnering with other lenders increases the lending capacity and enables the partners to provide more funds to the borrowers.

Increased evaluation accuracy

More than one lender evaluates borrowers' credit worthiness to increase the evaluation accuracy.

How does Co-Lending work?

OriginatorIt represents you (merchants) who partner with NBFCs.
LenderIt represents the partner NBFC.

You can contact your account manager to enroll in the co-lending program. The split percentage between the originator and lender is discussed and finalised with an agreement. The split should equal 100%. Once the enrollment is complete, you can track the disbursals using the following ledgers:

  • Lender Ledger
  • Originator Ledger
  • Intermediate Ledger

The money from the lender account is accounted in Lender Ledger. The money from the originator is accounted in Originator Ledger. After the agreement of the percentage between the lender and originator, Cashfree Payments keep a track of the payments, disbursals, and manage their accounts.

For example, let us think that the split percentage of the originator and lender is 20 and 80% for the co-lending program.

Disbursal request10000
Disbursal amount9900
Processing fee100

Cashfree Payments checks if 20% of the total amount and 80% of the total amount are present in the Originator and Lender ledgers. If both the ledgers have sufficient funds, we would credit the said amount in the Intermediate ledger. Cashfree Payments disburses the disbursement amount to the beneficiary and process the service charges at the end of the day. Multiple parties can entitle the said service charges.


We would decline the disbursal request if the funds are insufficient.