What is Co-Origination?
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Today, banks face challenges in offering credit to the priority sector, which includes MSMEs, education, agriculture, export, social infrastructure, housing and renewable energy, among others. On the other hand, digital lenders have immense geographical reach, even to remote locations.

With the introduction of the co-origination model, also known as co-origination, the RBI has opened the doors for banks to achieve their priority sector loan targets by leveraging the reach of digital lenders. The RBI has stated that co-origination is a “joint contribution of credit by both lenders,” in a way that both risks and rewards are shared between the banks and NBFCs.

In short, co-origination offers benefits for both banks and non-deposit taking NBFCs or digital lenders.

Why Co-Originate with Us?

With a presence in 300+ cities, we help lower customer acquisition costs and eliminate the hassle of credit collection, so you can concentrate on growing your business.

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India’s largest co-origination model

Up to 30% contribution from Capital Float for each loan disbursed through our co-origination model

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Low OPEX to build loan book

Leverage our technology to offer loans, without needing to invest in physical premises or personnel

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Geographical diversification

Use technology to reach a wider customer base and increase your company’s geographical reach

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Product/Consumer diversification

Add new customer segments to your existing base and diversify your financial offerings

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Priority sector lending targets

Meet targets set by the government for priority sector lending and help MSMEs reach their financial goals

OUR PARTNERS
CAPITAL FLOAT IN NUMBERS

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300

Cities

3470

POS

+30%

Conversion

+40%

Faster Payments
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TESTIMONIALS
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John Doe
newyork

Lorem Ipsum is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry's standard dummy text ever since the 1500s, when an unknown printer.

our-products-image
John Doe
newyork

Lorem Ipsum is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry's standard dummy text ever since the 1500s, when an unknown printer.

our-products-image
John Doe
newyork

Lorem Ipsum is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry's standard dummy text ever since the 1500s, when an unknown printer.

FREQUENTLY ASKED QUESTIONS

co-origination can be defined as a form of loan participation, where two or more lenders act as the secured party in a loan agreement or financial agreement. In its aim to drive economic growth for India and ensure financial inclusion, the government has increased its focus on the development of the priority sector. This includes MSMEs, export credit houses, the agriculture sector, social infrastructure companies, the education sector and the renewable energy sector.

However, traditional banks have neither the reach nor capacity to offer priority sector credit at the level that the government mandates. It is a challenge to perform credit evaluation and underwrite borrowers in this sector, due to their limited reach.

Therefore banks have been looking at several options, apart from direct funding, to meet the minimum guidelines of the RBI. One of the options is co-origination, where banks and non-deposit taking NBFCs enter into an agreement, sharing the risks and rewards of lending in a mutually agreed-upon proportion. The RBI has issued specific guidelines on how this shall be achieved.

Capital Float is an RBI licensed NBFC, with an established co-origination model. The company regularly co-originates with leading banks and NBFCs in the country. The team offers a great deal of support to partner institutions, with respect to underwriting processes, key norms like KYC fulfilments and collections.

Capital Float contributes up to 30% of the loan amount and manages the entire loan process, right from customer acquisition to servicing and collections. Hence, it results in low operating expenditures for partner banks. There are various other benefits to be gained, such as:

  • Lending partners gain access to a smart model of co-origination
  • Lending partners can reduce their OPEX to build book value
  • Lending partners can virtually increase their reach to remote locations and acquire new customers at a low cost
  • Capital Float offers custom-built, pocket-friendly loan solutions, which help increase customer retention 
  • Lending partners will be able to fulfil priority sector lending targets
  • Lending partners can tap into new and diverse consumer bases and loan products
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