Cashfree Payments Launches Co-lend

Cashfree Payments Launches Co-lend
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Cashfree Payments, a payments and banking technology company, recently released “Co-lend”, a fully automated escrow management solution for co-lending. 

Co-lend was developed in accordance with the Reserve Bank of India’s recently released digital lending standards (RBI). It offers automatic reconciliation, quick disbursal, and a dashboard for managing numerous relationships. It also eliminates reconciliation processes, alerts the loan management system immediately, and doesn’t require any manual interaction. 

The reconciliation of financing to the escrow accounts for disbursement and repayments is currently done manually in co-lending partnerships, which leads to mistakes and delays. Disbursements and collections take place from and into the Co-lend escrow when the lender and originator combine their funds there. Due to the gap between the Loan Management System (LMS), Loan Origination System (LOS), actual loan disbursal, and loan repayment during this process, each partner in the partnership experiences reporting delays as well as difficulties with accounting and reconciliation. All these issues are addressed by Cashfree Payments’ “Co-lend,” which automates the entire procedure to increase efficiency and accuracy. 

“With the exponential expansion in digital lending, there is a tremendous demand for compliant and scalable solutions. We are pleased to announce that Cashfree Payments now offers a co-lending platform to provide NBFCs and banks with a one-stop solution for escrow management, disbursal and repayment, with a focus on automating payments and complex reconciliation involved. As an innovator in the API banking and payments space, we have strived to deliver this solution at a vital juncture to assure continuity and development for our merchants while maintaining compliance at the forefront”, said Akash Sinha, Co-founder and CEO of Cashfree Payments.  

Co-lend is available for co-lending originators and lenders, particularly those who approve large numbers of loans and for whom real-time disbursement, repayment, and reconciliation are essential needs. Additionally, Cashfree Payments has worked with banks, loan management service providers, and loan origination service providers to enable a plug-and-play option for lenders that allows them to easily manage all of their co-lending and add new partners. Axis Bank, Kotak Mahindra Bank, Yes Bank, IndusInd Bank, and ICICI Bank are the banks that now enable a Co-lend integration. 

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