Co-lending checker
Check a co-lent loan against the RBI (Co-Lending Arrangements) Directions, 2025: retention, blended rate, the 15-day booking deadline and the DLG cap. Then run through the arrangement checklist to find the gaps before an auditor does.
1. Check a co-lent loan
Enter one loan. Everything is calculated in your browser; nothing is sent to us.
Default loss guarantee (portfolio level)
2. Check the arrangement
Answer for your current set-up. “Not sure” counts as a gap to look into.
- 01Both lenders are commercial banks (not SFBs, LABs or RRBs), All-India Financial Institutions or NBFCs (including HFCs). Para 4
- 02The loans are not under multiple banking, consortium lending or syndication. Para 6
- 03Your credit policy covers co-lending: internal limit on the share of the portfolio, target borrower segments, partner due diligence, customer service and grievance redressal. Para 11
- 04The partner agreement covers borrower selection criteria, product lines and areas, lending-service fees, segregation of responsibilities, timelines for sharing critical information, customer interface and grievance redressal. Para 12
- 05The borrower’s loan agreement discloses each lender’s role and names the single point of interface with the customer. Para 13
- 06Co-lending details, the blended rate and any extra fees (in the APR) are disclosed in the Key Facts Statement. Para 14, 19
- 07All disbursements and repayments, between lenders and with the borrower, go through an escrow account, and the agreement sets out how receipts are split. Para 26
- 08Each lender keeps the borrower’s account separately for its own share. Para 25
- 09Co-lent loans are inside the internal and statutory audit scope of each lender. Para 27
- 10There is a business continuity plan to keep serving borrowers if the arrangement ends. Para 28
- 11Each lender reports its own share of the loan to the credit information companies. Para 31
- 12If either lender marks the borrower SMA or NPA, the other is told near real time, and no later than the end of the next working day, and applies the same classification. Para 33
- 13A list of all active co-lending partners is published on your website. Para 35
- 14Co-lending details are disclosed in the Notes to Accounts (aggregate quantum, weighted average rate, fees, sectors, performance, DLG). Para 36
A self-check based on the RBI (Co-Lending Arrangements) Directions, 2025 (RBI/DOR/2025-26/139, 6 August 2025). It is not legal or regulatory advice and is not endorsed by the RBI. Other rules may also apply, for example the Digital Lending, KYC and Transfer of Loan Exposures directions. Read the directions on rbi.org.in.
Why the hard part is running it, not understanding it
None of these rules is complicated on its own. The trouble is that they apply loan by loan, between two institutions, every day. A 15-day booking clock on every disbursement, a retention floor that has to hold after every restructure, a guarantee cap measured against a moving book, and SMA flags that must reach the partner by the next working day. On email and spreadsheets, one of these slips sooner or later.
Averoic runs co-lending as configured workflows: a register of co-lent loans with both shares, booking timers, retention and DLG checks, partner notifications and approvals, with a record of who did what and when.
Frequently asked questions
What is the minimum retention in an RBI co-lending arrangement?
Under paragraph 10 of the RBI (Co-Lending Arrangements) Directions, 2025, each regulated entity must keep at least 10 per cent of every individual loan in its own books.
How is the blended interest rate calculated in co-lending?
It is the average of the rates charged by each lender, weighted by each lender’s funding share (paragraph 17). For example, 20% funded at 16% and 80% funded at 10% gives a blended rate of 11.2%.
Within how many days must the partner lender book its share?
Without delay after disbursement and in any case within 15 calendar days from the date of disbursement (paragraph 22). If the share is not transferred in that time, the loan stays with the originating lender and can be transferred only under the Transfer of Loan Exposures directions (paragraph 24).
What is the DLG cap in co-lending?
The originating lender may give a default loss guarantee of up to five per cent of loans outstanding under the arrangement, governed by the Digital Lending Directions (paragraph 32).
From when do the co-lending directions apply?
From 1 January 2026, or earlier if a lender’s internal policy chooses. Arrangements made before then follow the earlier rules (paragraphs 2 and 3).
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