Mumbai: Bank of Baroda has signed a co-lending partnership with IIFL Finance to provide gold loans to underserved and unbanked customers across semi-urban and rural India.
The initiative, named the Bank of Baroda IIFL Finance Co-Lending agreement, is designed to boost financial inclusion and deliver affordable credit for small borrowers, particularly in agriculture and allied activities.
Bank of Baroda IIFL Finance Co-Lending Model for Gold Loans
Under the co-lending framework of the Reserve Bank of India, IIFL Finance will originate and service the loans, while Bank of Baroda will fund them. Both institutions will jointly underwrite loans, ensuring an efficient and scalable credit system.
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By combining Bank of Baroda’s strong capital base and low-cost funds with IIFL Finance’s deep regional presence, the partnership is set to expand credit access to unbanked markets.
Tech-Driven Lending for Transparency and Efficiency
The Bank of Baroda IIFL Finance Co-Lending arrangement is powered by a tech-integrated platform enabling real-time data sharing.
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This ensures transparency, efficiency, and borrower protection while minimizing reconciliation errors. Customers will benefit from co-branded documentation, shared servicing responsibilities, and a seamless borrowing experience.
Commenting on the collaboration, Kirti Timmanagoudar, Head of Co-Lending at IIFL Finance, said the initiative will democratize access to credit with faster disbursals, competitive rates, and a digital-first lending process.
Madhur Kumar, Chief General Manager at Bank of Baroda, emphasized that the partnership reflects the Bank’s vision of bridging credit gaps, promoting inclusive growth, and strengthening India’s lending ecosystem.