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Co-lending in India: Tracing the evolution of a collaborative lending framework

This policy brief traces India’s co-lending framework and key Reserve Bank of India (RBI) reforms from 2018 to 2025. It highlights how these reforms strengthened governance, aligned incentives, expanded participation, and positioned co-lending as a scalable credit delivery model.

This policy brief examines the evolution of India’s co-lending framework from a priority-sector mechanism to a standardized model for collaborative credit delivery. It traces key Reserve Bank of India (RBI) milestones from the 2018 co-origination guidelines and 2020 co-lending model to the 2025 Directions. The brief examines changes in eligibility, risk-sharing, governance, customer protection, and operational processes. It highlights how the framework can expand credit access for underserved borrowers while balancing innovation with prudential oversight.

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Written by

jayan-nair

Dhawal Mehra

 Senior Manager
jayan-nair

Mini Niraj Kumar

 Associate
jayan-nair

Niyanta Desai

 Associate