Home / Companies / News /  CredCo-lend loan disbursement at 5,000 crore in FY22

CredCo-lend loan disbursement at 5,000 crore in FY22

According to CredCo-lend platform, it has enabled more than 50 partnerships across over 15 asset classes in the last financial year, accelerating the adoption of co-lending in the country.Premium
According to CredCo-lend platform, it has enabled more than 50 partnerships across over 15 asset classes in the last financial year, accelerating the adoption of co-lending in the country.

  • CredAvenue said consumer finance accounted for 45% of the platform’s total co-lending volume, while housing finance was another important category making up for 35% of overall co-lending volume

NEW DELHI: Debt market platform CredAvenue on Wednesday said its CredCo-lend vertical grew 35% month-on-month on an average, and disbursed close to 5,000 crore worth of loans with more than 14 lakhs transactions in financial year 2021-22. CredCo-lend enables disbursing of loans by two lender firms.

In a report, CredAvenue said consumer finance accounted for 45% of the platform’s total co-lending volume, while housing finance was another important category utilising the co-lending platform, accounting for 35% of overall co-lending volume, followed by the SME segment, which accounted for 9% of total volumes.

Maharashtra, Karnataka, and Tamil Nadu accounted for 36% of co-lending volumes in the consumer sector, while close to 25% of co-lending transactions from Delhi and NCR were for housing loans.

The report also highlighted that more than 30% of the two-wheeler financing comes from Tamil Nadu, followed by Punjab, Maharashtra, and Karnataka, with close to 10-15% shares each.

“Co-lending product is being increasingly used as a source of liability by companies across asset classes and AUM range to maintain a capital-light model, boost ROA and ROE, reach out to a wider customer base and get access to a continuous source of funding," said Arjun Sood, DVP, issuer onboarding - Co-lending platform, Cred Avenue.

The company experts the market size of co-lending to increase to 5-6% of the overall NBFC credit by FY24.

“We are seeing a preference towards co-lending model 2 or DA akin model in larger and higher rated originators. On the other end, early-stage or lower-rated NBFCs, FINTECHs prefer Model 1," said Sood.

According to CredCo-lend platform, it has enabled more than 50 partnerships across over 15 asset classes in the last financial year, accelerating the adoption of co-lending in the country.

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