NBFC and private sector banks come together under the core landing scheme announced by RBI for priority sectors. the Reserve Bank of India RBI launched a co-lending model scheme on Thursday under which the NBFC can provide loans along with banks to priority sector borrowers based on a prior agreement. The co-origination of the loan scheme was launched by the RBI in September 2018 and CLM is just an improvement over it.
Under this scheme, the lending institutions provide greater flexibility to the borrowers. The prime objective of the CLM launched by the RBI is to help the borrowers receive cash flow. Then we ate the undeserved and insert sector of the economy or the ultimate beneficiary. All of these sectors should receive loans or funds at affordable cost considering the lower cost of funds from the banks and greater reach of the nbfc.
The ideal point of contact for the customers will be nbfc that is the prime interface. This particular agreement shall have all the facilities of a bank and of NBFCas well. An all-inclusive interest rate shall be charged on the borrower in mutual consultation and conforming to the extant guidelines applies to both and the only NBFC can be the point of contact.
The banks are compulsorily asked to lend a particular amount to the specific sectors mainly being the weaker sections of the society agricultural sections MSME social and infrastructure. Other than that the RBI has also asked the NBFCto resolve any complaints under 30 days is the lender files a suitable complaint to them is NBFC fails to resolve complaints the borrower can take it off the notch and discuss it with the banking ombudsman for NBFC for the customer education and protection cell CEPC in RBI.