IKF Finance partners Bank of India for co-lending of vehicle loans

NEW DELHI: IKF Finance, backed by Motilal Oswal Private Equity, has entered into a co-lending partnership with Bank of India, a public sector bank, to offer commercial vehicle loans.

By leveraging IKF’s three-decade strong lending experience, Bank of India looks to strengthen its Micro, Small & Medium Enterprises (MSME) portfolio. As per IKF, the partnership with Bank of India is a significant milestone reinforcing the non-banking financial company’s (NBFC) efficient souring and underwriting capabilities.

As part of this co-lending tie up, IKF Finance, through its diversified network of branches across nine states will originate and process loans to vehicle finance borrowers as per mutually agreed credit parameters with the bank. Co-lending Model was announced by the Reserve Bank of India (RBI) to increase credit flow to the unserved and underserved sector by utilising the nimble-footed NBFC coverage to informal sector while leveraging banks’ cost of capital.

Vasumathi Koganti, managing director of IKF Finance Ltd., said, “This aligns well with IKF’s objective of becoming a one stop shop for all vehicle financing needs of the underserved. As we scale up to more than 10,000 crore assets under management (AUM) over the next few years such arrangements will help us channelize credit better and offer cost-efficient vehicle financing solutions to various borrower segments.”

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