RBI’s updated co-lending framework effective January 2026 requires banks and NBFCs to retain at least 20% of every MSME loan on their books, promoting equitable risk-sharing in priority sector lending portfolios exceeding Rs 5 lakh crore annually and unlocking collateral-free credit for 2 crore small units. This reform accelerates disbursals through fintech-bank tie-ups, leverages digital underwriting for faster approvals, and supports underserved segments like women entrepreneurs, fostering inclusive growth without compromising asset quality.
New Co-Lending Rules Mandate 20% Risk Retention for MSME Loan Partnerships
