IIFL Home Finance Ltd. (IIFL HFL), in compliance with RBI circular no. RBI/2020-21/63 FIDD.CO.Plan.BC.No.8/04.09.01/2020-21 dated November 05, 2020 is adopting the following policy on Co-lending of loans.
The above terms shall be defined on finer lines under the co-lending credit norms to be mutually agreed with the bank. For all the cases sourced IIFL HFL shall abide by said norms.
IIFL HFL shall not outsource credit decision process. Further, it shall ensure to seek approval from partnering bank via ex-ante due diligence by the bank in all cases where the master agreement entails a prior, irrevocable commitment on the part of the bank to take into its books its share of the individual loans as originated by the IIFL HFL If the bank can exercise its discretion regarding taking into its books the loans originated by IIFL HFL as per the Agreement, the arrangement will be akin to a direct assignment transaction with the exception of Minimum Holding Period (MHP) which shall not be applicable in such transactions undertaken in terms of this CLM. The MHP exemption shall be available only in cases where the prior agreement between the banks and NBFCs contains a back-to-back basis clause and complies with all other conditions stipulated in the guidelines for direct assignment.