Bank of Baroda, IIFL Finance enter into co-lending partnership

Bank of Baroda and IIFL Finance have entered into a co-lending partnership to offer gold loans primarily targeted at unbanked customer segments across semi-urban and rural India.

The collaboration aims to provide small borrowers with faster, easier, and more affordable credit for agricultural and allied activities.

Under this agreement and in line with the Reserve Bank of India’s guidelines on co-lending, IIFL Finance will originate and service the gold loans, while Bank of Baroda will participate in the funding, with joint underwriting by both parties, enabling a seamless and scalable credit delivery mechanism. The partnership will leverage the bank’s robust capital base and access to low-cost funds and IIFL Finance’s deep reach, significantly enhancing financial inclusion, a release from the bank said on Monday.

The partnership will be driven by a fully tech-integrated process, enabling real-time data sharing between both institutions, ensuring transparency, efficiency, and customer protection while minimising reconciliation errors. The agreement also provides for co-branded documentation and shared servicing responsibilities, ensuring a seamless experience for customers, the release added.