Please find the following update under RBI
The RBI (Co-Lending Arrangements) Directions, 2025 provide a regulatory framework for co-lending arrangements (CLAs) between regulated entities (REs) such as banks and NBFCs, effective from January 1, 2026. These guidelines mandate a minimum 10% loan retention by each RE, define roles and responsibilities, and ensure clear borrower disclosures through the Key Facts Statement (KFS). Interest rates must be a blended average based on each RE’s share, and additional fees must be transparently disclosed. Operationally, loan shares must be transferred within 15 days, routed through an escrow, and classified at borrower-level for asset quality. Default Loss Guarantee is allowed up to 5%, and all REs must ensure compliance with KYC, grievance redressal, and fair practices. Disclosure of CLA partners and aggregate data in financial statements is mandatory.
Link – https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12888&Mode=0
