Module: General Practice
Q71: Consider the following statements regarding the Co-Lending Model (CLM) between Banks and Non-Banking Financial Companies (NBFCs):
The NBFC acts as the single point of interface for the customer.
The Bank must take a minimum of 80% share of the individual loans on its books.
The NBFC must retain a minimum of 20% share of the individual loans on its books.
Which of the statements given above is/are correct?
The Bank must take a minimum of 80% share of the individual loans on its books.
The NBFC must retain a minimum of 20% share of the individual loans on its books.
Which of the statements given above is/are correct?
✅ Correct Answer: D
🎯 Quick Answer:
All statements are correct.Structural Breakdown: 1. Risk Sharing (The 80:20 Rule): The Bank takes the bulk of the asset (minimum 80%), and the NBFC is required to keep "skin in the game" (minimum 20%). 2. Interface: The NBFC creates the customer relationship and services the loan.
To the customer, it looks like a single loan, but the backend has two lenders.
3. Pricing: The interest rate charged to the borrower is a Blended Rate (a weighted average of the Bank's rate and the NBFC's rate).