The strategic blueprint of co-lending: Expanding credit access and institutional collaboration in India

• by Indrakshi Banerjee, Ashwin Shukla, Zeba Birjis and Mini Niraj Kumar
• Aug 25, 2026
• 1 min
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This policy brief explores India’s co-lending arrangement and how regulated entities combine their strengths to expand access to formal credit, share risks, and improve lending efficiency. It also outlines the operational framework, regulatory evolution, and technology that enables scalable collaboration.

This policy brief examines India’s co-lending framework and its evolution into a broader approach to formal credit delivery. It explains how originating and partner-regulated entities share funding, risks, revenues, and operational responsibilities. It also distinguishes co-lending from traditional lending, consortium lending, and loan transfers. The brief highlights how digital public infrastructure, APIs, electronic know your customer (e-KYC), e-Sign, and AI credit scoring improve efficiency and expand access for underserved and new-to-credit borrowers.