IKF Finance Limited partners with Bank of India for Co-lending of Vehicle Loans
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IKF Finance, backed by home grown firm Motilal Oswal Private Equity, entered into a co-lending partnership with Bank of India, a premier public sector bank to offer commercial vehicle loans. By leveraging IKF’s three decade strong lending experience, Bank of India looks to further strengthen its MSME portfolio. IKF’s partnership with Bank of India is a significant milestone reinforcing the NBFC’s 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 RBI to increase the credit flow to the unserved and underserved sector by utilizing the nimble footed NBFC coverage to informal sector while leveraging banks’ cost of capital.
Vasumathi Koganti, Managing Director of IKF Finance Ltd., commented that “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 Rs 10,000 cr 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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