Hi All, As we discuss the requirements and roadmap for *Fineract 2.0* with a focus on *Co-Lending*, please find below key RBI guidance documents (*India *specific) for your reference:
- *RBI Co-Lending Arrangements Directions, 2025 (Official PDF)* <https://www.fidcindia.org.in/wp-content/uploads/2025/08/RBI-CO-LENDING-06-08-25.pdf> - *Reserve Bank of India (Co-Lending Arrangements) Directions, 2025* <https://www.careratings.com/uploads/newsfiles/1755580627_Reserve%20Bank%20of%20India%20'Co-Lending%20Arrangements%20Directions'%202025.pdf> - *FAQ on Co-Lending Directions, 2025* <https://vinodkothari.com/wp-content/uploads/2025/08/FAQ-on-Co-Lending-Directions-2025.pdf> Co-lending is a broad topic in itself. I recommend *not mixing it with securitisation*; it should be developed as a separate module to effectively address co-lending-specific requirements. Regards, Ashok Auty On Mon, 15 Sept 2025 at 23:58, Kigred Developer <[email protected]> wrote: > Thanks for the clarifications James, Barath, Paul. > Regards. > Wilfred > > On Fri, 12 Sept 2025, 22:50 James Dailey, <[email protected]> wrote: > >> Wilfred - And, to be clear, this is what I was referring to in my >> response about "tagging". By tagging a set of loans, all of the >> transactions associated with those loans end up in a "separated account" as >> long as you generate your reporting data from that selection criteria. >> >> As Bharat mentioned, this asset externalization approach, which I spoke >> about for release 1.9 in January 2023 in a YouTube video doesn't fully >> cover the scenario you outlined but I think that if you combine this with >> the FUNDS concept I mentioned, that you could get very close and then you >> could see a much smaller gap in requirements for "new things". I could be >> wrong, but if the source of funds for a Loan Product can be a split >> percentage and then you use a specific tag for each of those in the >> portfolio, then you could use the percentage breakdown in the loan product >> definition as the source of information for an accounting treatment of the >> multi-party funded loan portfolio. The discriminator would be the tag, >> then the funds, or something like that. >> >> Again, if you could get a lot more specific about the actual use cases >> and specifics (like reporting requirements), with prioritization attached >> to specific functionali points, then you would find it easier to figure out >> what can be done now, or done with some level of effort. Right? >> >> Thanks, >> James Dailey >> >> >> >> On Fri, Sep 12, 2025 at 12:44 PM James Dailey <[email protected]> >> wrote: >> >>> Bharat - Thanks for sharing this information. It should be part of the >>> documentation that we offer at Fineract. >>> >>> Are these already on Jira tickets? If so, that's a good first step. >>> Then, do we move a summary to Asciidoc or to the Apache Fineract wiki "user >>> pages"? >>> >>> thanks, >>> James Dailey >>> >>> >>> >>> On Fri, Sep 12, 2025 at 10:05 AM Bharath Gowda <[email protected]> wrote: >>> >>>> Hi Wilfred and All, >>>> >>>> There is no specific feature available for co-lending but Fineract >>>> offers a new Functionality "Asset Externalization" which allows >>>> organizations to sell their loans(portfolios) to other Funders. >>>> But right now it is built only to support 100% of loan Sell and >>>> Buybacks but doesn't yet support the sharing of two owners to the same loan >>>> account. >>>> >>>> I believe the current "Asset Externalization" which is fully functional >>>> can be extended further to support owner sharing based on % as well. >>>> >>>> Attached links contains More Details of Asset Externalization for your >>>> reference >>>> >>>> >>>> https://drive.google.com/file/d/1G0yXqHx9u-3_3fAH8oeA8T5hHh9Ij4Kp/view?usp=drivesdk >>>> >>>> >>>> https://drive.google.com/file/d/1aNrj5ygssOic39J6gRARTdNV5d77ewAs/view?usp=drivesdk >>>> >>>> Regards, >>>> Bharath >>>> Lead Implementation Analyst | Mifos Initiative >>>> PMC Member | Apache Fineract >>>> Mobile: +91.7019635592 >>>> http://mifos.org <http://facebook.com/mifos> >>>> <http://www.twitter.com/mifos> >>>> >>>> On Thu, Sep 11, 2025, 5:13 PM Paul <[email protected]> wrote: >>>> >>>>> Co-lending - Split participations are relatively complex. >>>>> >>>>> Lender A may be invested at a 9% yield and be the servicer charging >>>>> serving fees. >>>>> They may keep late fees or split them based on ownership %. >>>>> Lender B may be at a 7.5% yield with Lender A retaining rate spread. >>>>> >>>>> Participations may have multiple investors . . . and of course the >>>>> customer's accounting is NOT impacted in any way by the investor or number >>>>> of investors. >>>>> Then there are multiple reporting and compliance requirements to >>>>> consider. >>>>> >>>>> I'm not familiar with what Fineract can support today, but IMO the >>>>> effort would need a dedicated group/team, servicing domain expert, months >>>>> of planning and requirement writing, then build and test. Testing would >>>>> take months and that is assuming +50% or more could be automated. >>>>> >>>>> Regards >>>>> Paul >>>>> >>>>> On Thu, Sep 11, 2025 at 1:38 AM Kigred Developer < >>>>> [email protected]> wrote: >>>>> >>>>>> @Bharath Gowda <[email protected]> >>>>>> I am suspecting you could be familiar with the co-lending subject. >>>>>> Do you think this qualifies as a new feature (or something worthy of >>>>>> being >>>>>> on a road map)?. >>>>>> The first time I interfaced with the term, it sounded exotic it >>>>>> sounded new but a couple of days later after discussing it with a >>>>>> colleague, it looks like something that can be accomplished by combining >>>>>> a >>>>>> couple existing features i.e (Accounting and a bit of automation if >>>>>> necessary). >>>>>> >>>>>> This is what I have so far understood about CO-LENDING: >>>>>> 1. BANK A issues a loan to a customer but this loan is not funded by >>>>>> BANK A alone. >>>>>> 2. There is another BANK B, that is providing the additional funds to >>>>>> make this happen (hence the term CO-LENDING). >>>>>> 3. To simplify it we can assume that BANK A took a loan themselves >>>>>> from BANK B (payable with interest). >>>>>> 4. The customer that took the may not even need to know that there is >>>>>> BANK B in the picture, his only obligation is to repay the loan they took >>>>>> with interest following the set installments. >>>>>> 5. Depending on the terms agreed between BANK A and BANK B, every >>>>>> time the customer makes a repayment to the loan they took, the >>>>>> outstanding >>>>>> balance will reduce and everything updated (normally), but additional >>>>>> accounting entries will be needed, that is BANK A settling their >>>>>> obligations to BANK B. >>>>>> >>>>>> That is all I believe there is to it, am I missing something? >>>>>> Regards >>>>>> Wilfred >>>>>> >>>>> >>>>> >>>>>
