InvestorQ : As a home loan customer, how will co-lending make a difference to me?
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As a home loan customer, how will co-lending make a difference to me?

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Niti Shenoi answered.
3 weeks ago
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Before you get into co-lending deals, here is what you must know. For example, RBI rules stipulate that co-lending arrangements be governed by a master agreement between two parties. As a client, you are entitled to know details of the co-lending agreement. RBI has made it mandatory that co-lending agreements be supported by business continuity plan so customers are clear on what to do if the co-lending partnership breaks up for any reason.

As a borrower, there are three things you must be absolutely clear about. Firstly, ensure that the larger party to the co-lending deal is a well-established banker regulated by RBI. Ensure they have deep roots in the financial system and also a long term stake and interest in the Indian financial markets. You obviously don’t want to deal with fly by night operators who start using strong arm tactics all of a sudden with you.

Secondly, it is very important that you go through the fine print of the master agreement before signing on as most of the devil normally lies in the details. Lastly, know what is your exit route. In case you are unhappy, you should have an easy exit route.

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