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Corporate Laws Central Ministry of Finance Reserve Bank of India Act, 1934

Reserve Bank of India (Co-Lending Arrangements) Directions, 2025

06-Aug-2025 | RBI/DOR/2025-26/139 DOR.STR.REC.44/13.07.010/2025-26

Reserve Bank of India (RBI) has issued Reserve Bank of India (Co-Lending Arrangements) Directions, 2025 with effect from 01st January 2026. Key Highlights: 1. Applicability - a. These directions apply to co-lending arrangements (CLAs) among commercial banks (excluding certain types), All-India Financial Institutions, and NBFCs (including HFCs). b. Digital lending continues under separate RBI directions, but if co-lending is involved, these directions will also apply. c. Does not apply to multiple banking, consortium lending, or syndication. 2. Key Requirements for Co-Lending - a. Each lender must keep at least 10% of every loan on their own books. b. Co-lenders must have a formal agreement detailing roles, responsibilities, customer handling, and grievance redress. 3. Interest Rate and Charges - a. The final interest rate charged to borrowers is a blended rate, calculated based on the proportionate share and rates of each lender. b. Any additional fees must be disclosed and included in the Annual Percentage Rate (APR). 4. Operational and Regulatory Requirements - a. Co-lenders must record their respective shares within 15 days of loan disbursement. b. All transactions must go through an escrow account, and each RE must maintain separate borrower accounts. 5. Asset Classification and Reporting - a. If one RE classifies a loan as NPA or SMA, the same status applies to the other's exposure. b. Both REs must report their respective loan data to Credit Information For more information, please refer to the attached document.

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