Managing 2,000 active loans leaves room for improvisation. Field officers know borrowers personally, delinquencies can be tracked on a spreadsheet, and bureau reports get compiled manually once a quarter. The informality works because the numbers are still small enough for a person to hold in their head. Once the portfolio grows to 20,000 loans, that […]
Why NBFCs Lose Co-Lending Mandates (And the Tech That Prevents It)
The co-lending model has become one of the most effective growth channels for NBFCs looking to scale their loan books without proportionally scaling their balance sheets. Banks bring the capital; NBFCs bring the customer reach, origination infrastructure, and last-mile servicing capability. On paper, the arrangement works cleanly. In practice, the operational complexity of running a […]
How AI Fraud Detection Cuts MSME Loan Risks in 2026
A micro-enterprise in Pune applies for a ₹15 lakh working capital loan. The Goods and Services Tax (GST) returns show consistent quarterly turnover. The bank statements show six months of regular credits. The credit bureau pulls returns no delinquencies. Every document is present, every box ticked. The rule-based system has nothing to flag. Three months […]
Future of Lending 2026: Key Trends Banks & NBFCs Must Watch
The lending landscape in India doesn’t change gradually. It moves in structural shifts, driven by regulatory mandates, maturing infrastructure, and borrower expectations that outpace most institutions’ ability to adapt. As 2026 gets underway, several of these forces are converging at once, and the lenders best placed to benefit are those who treated them as present […]
RBI’s New PSL Norms: What Lenders Need for Auditor Certification
Your compliance head receives a Reserve Bank of India (RBI) notice flagging Priority Sector Lending (PSL) classification discrepancies. The issue isn’t underreporting your PSL portfolio—it’s that the same underlying loans appear in multiple banks’ PSL claims. Different lenders financed the same Microfinance Institution (MFI), and each bank claimed the on-lending benefit for identical borrowers. This […]
When Your Best MSME Client Needs ₹2 Crore But Your Limit is ₹1.5 Crore
Your credit manager flags a loan application during morning review. The borrower has been with you for three years, maintains 100% repayment consistency across two existing loans totalling ₹80 lakh, and now needs ₹2 crore for warehouse expansion. Your exposure limit for this borrower: ₹1.5 crore. Walking away means handing a relationship you built to […]