IndusInd Bank, Indel Money in pact on gold loan co-lending
In what could be tagged as a maiden tie-up in the gold loan space, private-sector lender IndusInd Bank has entered into a co-lending partnership with Kochi-based gold loan firm Indel Money.
Mumbai: In what could be tagged as a maiden tie-up in the gold loan space, private-sector lender IndusInd Bank has entered into a co-lending partnership with Kochi-based gold loan firm Indel Money.
This is the first-of-its-kind conventional gold loan co-lending partnership between a gold-loan focused NBFC and a commercial bank, the Kochi firm, known for long-term loans against the yellow metal, said in a statement on Wednesday.
Under the tie-up, IndusInd Bank will offer gold loans at competitive rates to its customers, which will be originated by Indel Money, Umesh Mohanan, chief executive of Indel Money, said on Wednesday.
"We will originate and process gold loans based on mutually formulated credit parameters and eligibility criteria, under this co-lending partnership. We will also service the customers through the entire life-cycle of the loans, including sourcing, documentation, collection and loan servicing," said Mohanan, who is also the executive director of the diversified group.
The group is engaged in the car and two-wheeler retail, media and film production and EPC contracts.
While IndusInd Bank will take into its book 80 per cent of the gold loan generated by the co-lending arrangement, the remaining 20 per cent will be funded by Indel Money, Mohanan told PTI without disclosing how much incremental growth he expects in the AUM under this agreement.