Co-Lending Model (CLM)
Expanding Credit Access With Joint Lending Between Financial Institutions
Expand Credit Access
Bring affordable credit to underserved sectors like small businesses and agriculture.
Share Risk, Strengthen Portfolios
Distribute credit risk between banks and NBFCs for healthier loan books.
Lower Cost, Better Value
Leverage cheaper bank funds and NBFC reach to offer competitive borrower rates.
Types of Co-lending Models
Different approaches to co-lending partnerships
Joint Origination
Financial institutions collaborate to originate loans together, combining their strengths in credit appraisal, due diligence, and disbursement.
Securitization
Loan portfolios are bundled and sold to investors, enabling financial institutions to unlock capital, manage risk, and improve liquidity.
Challenges in Co-lending through Joint Orinination
Common obstacles in traditional co-lending implementations
Integration Complexity
One-on-one integration requires time, API framework, and limits scalability & access.
Policy Alignment
Aligning originator's and investor's credit & underwriting policy into the system and developing coordinated workflows per partner.
Operational Complexity
Managing multiple parallel operations and monitoring different accounting models.
Reporting Delays
Time lag in report generation and non-availability of dynamic reports for analysis.
Catalyst by Lending Labs
Comprehensive middleware platform for seamless co-lending
Middleware Integration
Middleware software to integrate both parties along with strong API integrations for seamless communication.
Configurable Credit Policies
Credit and underwriting criteria implemented through configuration of Master agreement and Domain Specific Language (DSL).
Process Automation
Workflow designed as per required processes with continuous supervision at both unit level and loan/product level.
Real-time Analytics
Real-time analytical dashboards available for business intelligence and data reports generation for audits.
Catalyst by Lending Labs
Comprehensive communication layer for all co-lending stages
Application Stage
Application submission and content sharing middleware
Underwriting Stage
Underwriting decision communication middleware
Agreement Stage
Agreement creation and signing communication
Disbursement Stage
Disbursement communication middleware
Implementation Architecture
Seamless integration for all parties
Originating Lender LOS
Integrated loan origination system
API Middleware
Common Data Model & Process Models
Participating Lender LOS
Integrated loan origination system