IIFL Finance Advocates Co-Lending to Expand Credit Access
IIFL Finance has stated that co-lending partnerships between banks and non-banking financial companies (NBFCs) can be transformative in delivering affordable formal credit to underserved borrowers, accelerating India's financial inclusion. The company made the remarks on July 7, 2026, emphasizing the potential of such collaborations to reach entrepreneurs, farmers, self-employed professionals, and micro, small, and medium enterprises (MSMEs) across the country.
Banks and NBFCs: Complementary Strengths
Mayank Sharma, Head of Gold Loan at IIFL Finance, explained that financial inclusion today must focus on enabling every aspiring entrepreneur to access institutional credit. He noted that co-lending combines banks' low-cost capital and strong balance sheets with NBFCs' local market knowledge, last-mile distribution, and customer relationships in underserved areas. This synergy can improve credit access, speed up loan disbursements, and reduce reliance on informal finance sources.
Regulatory Support and Digital Infrastructure
Sharma welcomed the Reserve Bank of India's co-lending framework, which provides regulatory clarity on governance, risk sharing, and customer protection. He also highlighted the role of India's digital public infrastructure—including Jan Dhan, Aadhaar, UPI, and the Account Aggregator framework—in enabling next-generation credit delivery. Technology, he said, is making co-lending more efficient through digital onboarding, AI-led underwriting, and consent-based data sharing.
Impact on MSMEs and Last-Mile Borrowers
Sharma emphasized that local NBFCs possess valuable insights into regional businesses and informal income patterns, allowing them to serve customers who may not fit conventional underwriting models. He stated that the success of co-lending will ultimately be measured by the number of entrepreneurs empowered, businesses financed, and livelihoods supported. With the enabling framework created by the RBI and government, co-lending can become a defining pillar of India's next phase of financial inclusion.
IIFL Finance is a leading retail-focused NBFC in India, offering gold loans, home loans, business loans, microfinance, loans against property, and capital market finance, with a strong focus on expanding financial inclusion.
