This Week’s Signal
RBI’s revised co-lending guidelines (effective January 2026) introduced three operational requirements that most NBFCs haven’t yet built into their tech stack: both bank and NBFC must retain at least 10% of every co-lending loan at disbursement, FLDG is capped at 5% of the covered portfolio, and the bank’s loan share must be settled within 15 days of disbursement. As of mid-2026, many NBFCs operating co-lending arrangements are still managing these requirements manually.Â
Our Take
The credit case for co-lending is clear. Banks provide cheap liability. NBFCs provide origination and relationship management. On paper it’s a clean partnership.Â
In practice, the 2026 rules have added three requirements that expose most NBFCs’ tech gaps.Â
First: 10% minimum risk retention. This means your LOS must calculate and lock each party’s exposure at disbursement: not manually, not post-facto.Â
Second: the 15-day settlement window. If your LMS isn’t tracking settlement status by loan, by partner, and by disbursement date, you’re manually managing a compliance deadline at scale with human error as the risk.Â
Third: FLDG utilisation tracking. With the cap at 5%, you need real-time visibility on FLDG consumed versus limit remaining per co-lending agreement. Most NBFCs are running this in Excel.Â
What this means operationally: your LOS, LMS, and Partner Hub need to talk to each other in real time, for every single co-lending disbursement. The NBFCs that win the co-lending market over the next two years won’t be the ones with the best bank partnerships. They’ll be the ones whose ops teams don’t need a spreadsheet to close out each settlement.Â
What We Built For This
UltraBanker’s Partner Hub Platform has native co-lending infrastructure: automatic risk split calculation at disbursement, settlement timeline tracking with deadline alerts, FLDG utilisation dashboards per agreement, and two-ledger loan account generation that keeps both the bank’s and the NBFC’s books in sync. No Excel. No manual reconciliation. ultrabanker.ai/partner-hub-platform.
Industry Musing
Co-lending is the fastest way to scale an NBFC’s book. It’s also the fastest way to fail an RBI audit if your ops infrastructure wasn’t built for it. Most co-lending agreements are signed by the credit team. The compliance headaches land on the ops team.Â
From the Blog this Week
This week, I lay out the five operational workflows every NBFC needs in place before signing a co-lending agreement: the questions no one answers at the term sheet stage. Part checklist, part cautionary tale from cases we’ve seen.Â
Read Full Blog : Co-Lending Operations in 2026: The 5 Workflows You Need Before You Sign – UltraBanker.
Explore UltraBanker’s Partner Hub Platform at Partner Hub Platform – UltraBanker.