Indel Money, a non-banking finance company (NBFC) pioneering in gold loans, has entered into a first-of-its-kind conventional gold loan co-lending partnership with IndusInd Bank to offer gold loans at competitive rates to a bigger and diverse segment of borrowers.
Under the co-lending partnership agreement, Indel Money will originate and process gold loans based on mutually formulated credit parameters and eligibility criteria. The company will service the customers through the entire lifecycle of the loans including sourcing, documentation, collection and loan servicing.
IndusInd Bank will take into its book 80% of the gold loan generated by the co-lending arrangement while the remaining 20% will be funded by Indel Money. The NBFC will start the co-lending partnership with a pilot project in Sept 2021 before expanding it pan India.
The co-lending partnership will help both Indel Money and IndusInd Bank to enhance its gold loan portfolio across the country by penetrating various market segments.
Mr. Umesh Mohanan, Executive Director and CEO, Indel Money said, “It’s a pleasure to sign the co-lending agreement with IndusInd Bank. The co-lending partnership places greater responsibility on us to excel in managing the gold loan lifecycle and underscores the trust and value that the bank has on our expertise and technology capability to meet unsolved credit needs of the underserved segments of borrowers. The partnership will help us serve an extensive range of customers across geographies and ticket-size.”
Mr. Srinivas Bonam, Head of Inclusive Banking Group, Induslnd Bank said, “We are pleased to partner with Indel Money for extending gold loans. They have strong presence in the southern region with plan to expand across India. The collaboration is in line with our philosophy and strategy to bring efficient and inclusive lending solution through partnership.”
About Indel Money
Indel Money Limited is a non-banking finance company (“NBFC”), operating in the finance space since 1986, excelling in the gold loan sector, lending money against the pledge of household gold jewellery (“Gold Loans”). It has marked its uniqueness by means of its long-term gold loan products such as 1 & 2-year gold loan. The 2-year gold loan makes them the only NBFC, providing the longest gold loan tenure in the country. The company has a network of 191 branches spread in the states of Kerala, Tamil Nadu, Karnataka, Andhra Pradesh and Telangana and the Union Territory of Puducherry. The company will foray into the states of Orissa, West Bengal and Maharashtra in this financial year with a focus on expanding into the states of Gujarat and Rajasthan in the next financial year.
About IndusInd Bank
IndusInd Bank, which commenced operations in 1994, caters to the needs of both consumer and corporate customers. Its technology platform supports multi-channel delivery capabilities. As on June 30, 2021, IndusInd Bank has 2,015 Branches/Banking outlet and 2,870 ATMs spread across 760 geographical locations of the country. The Bank also has representative offices in London, Dubai and Abu Dhabi. The Bank believes in driving its business through technology. It enjoys clearing bank status for both major stock exchanges – BSE and NSE – and major commodity exchanges in the country, including MCX, NCDEX and NMCE. IndusInd Bank was included in the NIFTY 50 benchmark index on April 1, 2013.