IIFL Finance Highlights Co‑Lending as a Driver of Financial Inclusion
IIFL Finance, a leading retail‑focused NBFC, issued a press release on 7 July 2026 stating that co‑lending partnerships between banks and non‑banking financial companies can play a transformative role in expanding affordable formal credit to underserved borrowers, thereby strengthening the next phase of India’s financial inclusion agenda.
Mayank Sharma, Head – Gold Loan at IIFL Finance, explained that India’s inclusion journey must now ensure timely, responsible credit reaches entrepreneurs, farmers, self‑employed professionals and MSMEs across the country. He emphasized that banks contribute low‑cost capital and strong balance sheets, while NBFCs bring deep local market understanding, last‑mile distribution capabilities and established customer relationships in underserved geographies. The combination, he said, can improve credit access, accelerate loan disbursements and reduce reliance on informal sources of finance.
Sharma welcomed the Reserve Bank of India’s co‑lending framework, noting that it provides regulatory clarity on governance, risk‑sharing and customer protection, thereby creating a solid foundation for responsible collaboration between banks and NBFCs. He also highlighted the role of the Government’s digital public infrastructure—including Jan Dhan, Aadhaar, UPI and the Account Aggregator framework—in enabling the next generation of credit delivery.
According to Sharma, technology is making co‑lending more efficient through digital onboarding, AI‑led underwriting and consent‑based data sharing. When combined with India’s digital infrastructure, these tools have the potential to significantly improve last‑mile credit delivery. He underscored the importance of co‑lending for the MSME sector, stating that local NBFCs possess valuable insights into regional businesses and informal income patterns, allowing them to serve customers who may not fit conventional underwriting models.
Sharma concluded that the success of co‑lending will ultimately be measured by the number of entrepreneurs empowered, businesses financed and livelihoods supported. With the enabling framework created by the RBI and the Government, co‑lending can become a defining pillar of India’s next phase of financial inclusion, ensuring that opportunity is determined by aspiration rather than geography.