Bank of Baroda and IIFL Finance have joined hands in a co-lending partnership aimed at boosting gold loan availability for underserved and unbanked populations in rural and semi-urban regions.
The collaboration reflects a rising trend of banks aligning with NBFCs to extend credit to borrowers outside the formal financial mainstream.
IIFL Finance will originate and service the loans, while Bank of Baroda will fund and jointly underwrite them, ensuring compliance with RBI norms. Officials from both organisations stressed that the initiative leverages advanced technology for real-time data sharing, streamlined documentation, and faster disbursement.
According to Bank of Baroda, the partnership “aligns with our objective to deepen rural credit and accelerate financial inclusion, using technology and co-lending models to reach customers previously excluded from formal banking avenues.”
Highlighting the benefits for customers, IIFL Finance stated, “This collaboration ensures affordable rates, efficient loan processing, and enhanced security, thanks to shared best practices and oversight from a leading public sector bank.”
The partnership particularly targets agricultural and allied sectors, enabling small borrowers to access short-term credit with minimal paperwork and competitive interest rates.
This co-lending model is expected to become a benchmark for similar bank-NBFC collaborations, advancing inclusive finance in India.
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