Under RBI's Co-Lending Model, a bank and an NBFC share a loan, typically 80:20. Boards discuss it as a funding strategy. Engineers discover it is a double-entry problem that shows up at every single event in the loan's life.
The disbursal to the borrower is one transaction; the funding is two. The ledger must record the bank's 80% and the NBFC's 20% as separate exposures from day one, with the NBFC's books showing only its share as an asset.
Each EMI splits principal and interest, then splits each by share, then applies the agreed interest-rate differential. Doing this by hand at month-end is how partner reconciliations break.
Processing fees, penal charges and servicing fees each have their own sharing rules. The escrow account must reconcile daily against both partners' records.
If the split is computed anywhere except the ledger, two partners will eventually disagree about the same loan.
Both partners classify the same loan under IRAC; both report to bureaus; both must show consistent numbers. A shared source of truth is the only way that stays consistent.
The co-lending module records each partner's share at the exposure level, splits every collection, income and expense event automatically, reconciles escrow daily, and produces partner statements from the same ledger that runs the rest of the book.
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