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      Question

      Under the Co-Lending Model (CLM) between banks and NBFCs

      , what is the minimum share of loans that NBFCs must retain ?
      A 20% Correct Answer Incorrect Answer
      B 15% Correct Answer Incorrect Answer
      C 10% Correct Answer Incorrect Answer
      D 5% Correct Answer Incorrect Answer
      E No such requirement Correct Answer Incorrect Answer

      Solution

      In terms of the Co-Lending Model (CLM), banks are permitted to co-lend with all registered NBFCs (including HFCs) based on a prior agreement. The co-lending banks will take their share of the individual loans on a back-to-back basis in their books. However, NBFCs shall be required to retain a minimum of 20% share of the individual loans on their books . Ā 

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