Image Source: QGO Finance, Facebook
QGO Finance Ltd has approved a co-lending agreement with Choice Finserv under RBI guidelines. This partnership allows both firms to collectively share risks and expand credit access, offering borrowers a single blended interest rate. The master agreement ensures clear roles, risk sharing, loan allocation, and compliance for efficient co-lending operations.
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QGO Finance Limited has officially sanctioned a co-lending arrangement with Choice Finserv, a move aligned with RBI guidelines to diversify its sourcing channels and expand market reach. The collaboration aims to leverage the strengths of both entities to extend credit facilities efficiently, sharing risks and profits.
Major Highlights:
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Strategic Partnership: The agreement enables QGO to partner with Choice Finserv, ensuring compliance with extant RBI co-lending guidelines.
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Framework & Compliance: Both parties will follow a detailed master agreement covering loan allocation, funding, interest rates, risk-sharing, and regulatory compliance.
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Operational Mechanics: The arrangement involves parallel underwriting and disbursement, with loans being disbursed in books of both lenders per pre-agreed ratios.
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Risk & Credit Management: Responsibilities include borrower due diligence, collateral security, valuation methods, and governance of loan servicing and grievance redressal.
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Loan Limits & Disclosures: The co-lending share in non-priority sectors shall not exceed 30%, with strict adherence to disclosure and reporting norms to regulators.
This partnership enhances QGO’s financial product offerings and market scope while reinforcing compliance with RBI norms. The approval aligns with QGO’s strategic goal of diversifying and strengthening its lending portfolio.
Sources: NSE Circular, QGO Finance official policies
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