Indel Money, a non-banking finance company (NBFC) pioneering in gold loans, has entered into a first-of-its-kind conventional gold loan co-lending partnership with IndusInd Bank to offer gold loans at competitive rates to a bigger and diverse segment of borrowers.
Under the co-lending partnership agreement, Indel Money will originate and process gold loans based on mutually formulated credit parameters and eligibility criteria. The company will service the customers through the entire lifecycle of the loans including sourcing, documentation, collection and loan servicing.
IndusInd Bank will take into its book 80% of the gold loan generated by the co-lending arrangement while the remaining 20% will be funded by Indel Money. The NBFC will start the co-lending partnership with a pilot project in Sept 2021 before expanding it pan India.
The co-lending partnership will help both Indel Money and IndusInd Bank to enhance its gold loan portfolio across the country by penetrating various market segments.
Mr. Umesh Mohanan, Executive Director and CEO, Indel Money said, “It’s a pleasure to sign the co-lending agreement with IndusInd Bank. The co-lending partnership places greater responsibility on us to excel in managing the gold loan lifecycle and underscores the trust and value that the bank has on our expertise and technology capability to meet unsolved credit needs of the underserved segments of borrowers. The partnership will help us serve an extensive range of customers across geographies and ticket-size.”
Mr. Srinivas Bonam, Head of Inclusive Banking Group, Induslnd Bank said, “We are pleased to partner with Indel Money for extending gold loans. They have strong presence in the southern region with plan to expand across India. The collaboration is in line with our philosophy and strategy to bring efficient and inclusive lending solution through partnership.”