Question
Under the Co-Lending Model (CLM) between banks and NBFCs
, what is the minimum share of loans that NBFCs must retain ?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 . Â
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