Revolutionizing Credit Distribution: Co-Lending Feature in Graviton's Loan Management System

In India’s dynamic and increasingly digital lending ecosystem, institutions must innovate not just to scale, but to collaborate. One such innovation shaping the future of credit delivery is co-lending, a powerful, RBI-backed model that empowers banks and NBFCs to partner in financing borrowers. But while co-lending as a concept is promising, its real-world execution hinges on having the right infrastructure. 

This is where Graviton’s Loan Management System (LMS) steps in. 

Graviton LMS is not just built to manage loans. it’s designed to drive smarter, faster, and fully compliant co-lending journeys. In this blog, we will explore how the co-lending feature in Graviton LMS is purpose-built to address the operational complexities, regulatory requirements, and technology expectations of this model enabling lenders to scale faster and collaborate with precision. 

 

What is Co-Lending? 

Co-lending refers to a structured partnership model where two financial institutions jointly lend to a borrower, most commonly a bank and a Non-Banking Financial Company (NBFC). Typically, the bank funds a larger portion of the loan (often 80%), while the NBFC contributes the remaining 20%. The borrower receives a single loan, but risk, interest, and responsibilities are shared. 

Co-lending is especially impactful for: 

• Extending credit to underserved segments 

• Achieving Priority Sector Lending (PSL) targets 

• Reducing risk exposure 

• Expanding geographic reach without physical presence 

With the RBI’s Co-Lending Model (CLM) launched in 2020, co-lending has become a regulated, scalable, and increasingly adopted model in India. 

Why Co-Lending Needs a Powerful LMS? 

While the co-lending model is strategically sound, it brings with it substantial operational complexities. From dual-party disbursement and escrow integration, to real-time ledger updates, risk-sharing, and audit trails, lenders need systems that are not just flexible,but co-lending-ready. 

Graviton LMS is built for this. It integrates co-lending functionality at the core, enabling institutions to launch, manage, monitor, and scale co-lending partnerships without friction. 

Let’s dive into the key co-lending features of Graviton LMS and how they solve pain points across the lending lifecycle. 

Key Features of Co-Lending in Graviton LMS 

1. Dual-Party Loan Structuring (CLM1 & CLM2 Supported) 

Graviton LMS supports both CLM1 (single loan agreement) and CLM2 (dual agreement) structures. 

• CLM1 Workflow: Borrower signs one agreement. Graviton manages shared escrow, split disbursements, and collections reconciliation, while the NBFC handles borrower servicing. 

• CLM2 Workflow: Two agreements with independent servicing logic. Graviton LMS manages dual ledgering, fund flow segregation, and regulatory tracking independently for each lender.

  Lenders can configure the desired model dynamically per partnership, ensuring complete compliance and flexibility. 

  
  

2. Escrow Integration & Automated Fund Splitting 

Graviton LMS seamlessly integrates with escrow accounts, automating: 

• Disbursement fund splits (bank and NBFC contributions) 

• EMI collection splits as per ratio (e.g., 80:20) 

• Reconciliation of incoming repayments 

• Real-time settlement between both parties 

This ensures financial transparency and simplifies audit and compliance processes. 

 

3. Customizable Risk Sharing & Interest Calculation 

Each co-lending partnership may define different rules for: 

• Principal contribution ratio 

• Interest rate sharing 

• Fee or incentive allocation 

• Default loss risk 

Graviton LMS allows customizable risk-sharing templates per co-lending partner. Each disbursement, repayment, and ledger entry is governed accordingly,ensuring accuracy down to the paisa. 

4. Multi-Partner & Product-Level Configuration 

Not every loan product has the same structure. Graviton LMS allows: 

• Product-level configuration of co-lending rules 

• Multiple bank-NBFC pairings within the same institution 

• Segmented co-lending by borrower type, location, or loan size 

This allows lending institutions to manage dozens of co-lending arrangements simultaneously,without compromising performance or compliance. 

5. Real-Time Ledger Synchronization 

Every EMI received, every repayment processed, every waiver applied—Graviton LMS logs it in dual ledgers, synced in real time. 

• Each lender’s share is automatically updated 

• Accounting entries are created for each transaction 

• Periodic reports ensure no mismatch or delay 

The system ensures that both parties have real-time access to accurate financial data, which is crucial for trust, compliance, and audit readiness. 

 

6. Borrower Lifecycle Management 

While banks often stay in the background, NBFCs or digital lenders manage the borrower journey. Graviton LMS ensures: 

• Centralized borrower dashboard 

• Unified communication module 

• Auto-sync with Loan Origination System (LOS) 

• Real-time NPA and delinquency alerts 

This ensures borrowers get a seamless, unified experience—irrespective of the complexity behind the scenes. 

 

7. Audit, Compliance, and RBI Reporting 

Graviton LMS is built to ensure that every co-lending transaction, disbursement, and collection is logged with: 

• Time-stamped audit trails 

• Dynamic MIS reports 

• PSL qualification tagging 

• Custom RBI-compliant reporting formats 

This reduces regulatory friction and ensures that banks and NBFCs can demonstrate compliance at any point. 

 

8. Role-Based Access for Lender Stakeholders 

Different teams across bank and NBFC partners need different levels of access. Graviton LMS provides: 

• Configurable user roles for each partner 

• Secure API-based access to reporting 

• Controlled view of borrower and transaction data 

• Read-only or transactional access based on SLA 

This improves coordination between partners and enables secure, streamlined operations. 

Strategic Benefits of Co-Lending with Graviton LMS 

Benefit	How Graviton LMS Delivers It
Faster Co-Lending Deployment	Plug-and-play integration with partner systems, flexible CLM1/CLM2
Accurate Fund Management	Escrow-based automation and ledger sync
Scalable Operations	Manage hundreds of co-lending rules and partners
Risk Control	Custom sharing rules, NPA tracking, borrower insights
Zero Compliance Gaps	RBI-ready reports, audit logs, SLA enforcement
Better Borrower Experience	Unified communications, lifecycle tracking, minimal delays

Whether you're a mid-sized NBFC looking to tap into cheaper capital, or a large bank seeking last-mile reach,Graviton LMS offers the digital rail to make co-lending frictionless, fast, and fully compliant. 

Real-World Use Cases Supported 

• Priority Sector Lending (PSL) 

• MSME and SME co-lending 

• Microfinance partnership models 

• Digital-first lending platforms 

• Regional banks + NBFC collaborations 

Graviton LMS is trusted by lenders of all sizes to power complex co-lending workflows, especially in fast-moving segments like gold loans, education loans, and small business finance. 

Final Thoughts: Co-Lending Is the Future—Graviton LMS Makes It Scalable 

Co-lending represents a powerful shift in credit distribution, enabling collaborative scale, deeper penetration, and improved efficiency. But for it to succeed, the technology behind it must be robust, flexible, and fully compliant. 

Graviton LMS is built to be that backbone. 

With ready-to-deploy co-lending workflows, RBI-compliant features, and deep configurability, we don’t just support co-lending, we empower it. As the Indian lending landscape evolves, Graviton LMS stands as the technology partner for institutions that are ready to scale, partner, and lead. 

Explore how Graviton simplifies co-lending workflows and scales partnerships effortlessly: https://calendly.com/sneha-kugelblitz/60min?month=2025-07

FAQs: Co-Lending Feature in Graviton LMS 

Q1. Does Graviton LMS support both CLM1 and CLM2 models? 

Yes. Graviton LMS supports both co-lending models as per RBI guidelines, with complete backend and frontend customization. 

Q2. Can we manage multiple co-lending partners simultaneously? 

Absolutely. Graviton LMS is built for scalability and supports multiple lenders, rules, and SLAs across products and geographies. 

Q3. What kind of escrow integrations are available? 

We offer native integration with top escrow providers and banks, allowing automatic disbursement, fund splits, and repayment reconciliation. 

Q4. Can each partner access their own data securely? 

Yes. Graviton LMS offers secure, role-based access for each lender, ensuring data privacy, transparency, and controlled collaboration. 

Q5. How does your system handle interest and risk-sharing calculations? 

Each co-lending rule is defined during setup. Our engine automatically calculates interest, principal splits, and late fees as per agreed ratios. 

Q6. Are MIS and RBI-compliant reports available out of the box? 

Yes. Graviton LMS generates RBI-compliant reports, co-lending portfolio summaries, partner-wise settlements, and audit logs on demand. 

Q7. Is the co-lending feature customizable for different loan products? 

Yes. You can configure co-lending settings per loan product, borrower segment, or geography. 

Q8. How do you ensure real-time ledger accuracy between both lenders? 

Graviton LMS uses dual ledgers with automated reconciliation. Every transaction is split and logged in real time, ensuring zero mismatch.