CURRENT AFFAIRS

Detailed explanation-1: -State-owned Bank of Maharashtra on Monday said it has entered into a co-lending agreement with the Pune-based non-banking financial company LoanTap Credit Products, for MSME loans.

Detailed explanation-2: -Detailed Solution. The correct answer is MAS Financial Services.

Detailed explanation-3: -The term Co-origination of loan means that both Banks (lender) and NBFCs (originator) share the risk in a ratio of 80:20, that is, 80 % of the loan with the lender and 20 % minimum with the originator. Co-origination loans were designed originally to overcome the liquidity crisis in the NBFC sector.

Detailed explanation-4: -The rules. According to RBI, the “Co-Lending Model” (CLM) is aimed at improving the flow of credit to the unserved and underserved sector of the economy and make available funds to the ultimate beneficiary at an affordable cost, considering the lower cost of funds from banks and greater reach of the NBFCs.

Detailed explanation-5: -Generally, it is used in its short form “Co” and as a prefix to the actual project title to show the partnership between the parties. Hence from the above two definitions, we can infer that co-lending refers to the coming together of two or more lenders to loan out money together to their target audience.