How does the co-lending model promote financial inclusion?

The co-lending model promotes financial inclusion by bridging the gap between traditional banks and underserved segments of society. Through partnerships between banks and NBFCs, the model combines the banks' low-cost funds with the NBFCs' local reach and customer insights. This enables loans to reach rural areas, small businesses, and individuals with limited credit histories who might otherwise struggle to access formal credit. The co-lending model offers flexible terms, faster approvals, and tailored solutions, making credit more accessible. By extending financial services to unbanked populations, it helps drive economic growth and reduce inequalities.