Cashfree Payments introduces ‘Co-lend’: India’s first automated escrow management solution for co-lending

Cashfree Payments

Cashfree Payments, India’s leading payments and API banking solutions provider, has introduced ‘Co-lend,’ the country’s first completely automated escrow management solution for co-lending. ‘Co-lend’ was created in accordance with the Reserve Bank of India’s digital lending rules (RBI). It allows for quick disbursement, as well as auto reconciliation and a dashboard for managing different partnerships. Furthermore, it requires no manual intervention, automatically alerts the loan management system, and removes the need for reconciliation.

Currently, reconciliation of financing to escrow accounts for disbursement and repayments is done manually in co-lending agreements, resulting in inaccuracies and delays. The lender and originator combine their funds in the Co-lend escrow, and then disbursements and collections are made from and into the escrow. The Loan Management System (LMS), the Loan Origination System (LOS), and the actual loan disbursement as well as repayment are all separated during this process, resulting in reporting delays and accounting and reconciliation issues for each partner. Cashfree Payments’ ‘Co-lend’ solution overcomes all of these issues and automates the entire process, enhancing efficiency and accuracy.

Cashfree Payments’ ‘Co-lend’ platform provides a strong platform for co-lending originators and lenders, particularly those who sanction huge volumes of loans and require real-time disbursement, payback, and reconciliation. Cashfree Payments has also collaborated with Loan Management Service and Loan Origination Service providers, as well as banks, to create a plug-and-play service that allows lenders to easily manage all of their co-lending and add new partners. ICICI Bank, Kotak Mahindra Bank, Yes Bank, IndusInd Bank, and Axis Bank are the current banks that support Co-lend integration.

Akash Sinha, Co-founder and CEO of Cashfree Payments, said, “With the exponential expansion in digital lending, there is a tremendous demand for compliant and scalable solutions. We are pleased to announce that Cashfree Payments now offers a co-lending platform to provide NBFCs and banks with a one-stop solution for escrow management, disbursal and repayment, with a focus on automating payments and complex reconciliation involved. As an innovator in the API banking and payments space, we have strived to deliver this solution at a vital juncture to assure continuity and development for our merchants while maintaining compliance at the forefront.”

Also Read | Cashfree Payments announces disbursement and collections loan solutions for NBFC & LSPs

With its product Payouts, Cashfree Payments now leads the way in bulk disbursals in India, with a market share of more than 50% among payment processors. SBI, India’s largest lender, recently invested in Cashfree Payments, highlighting the company’s importance in developing a healthy payments ecosystem. The company collaborates extensively with all major banks to develop the basic payments and banking infrastructure that underpins the company’s offerings, and it is also integrated with major platforms such as Shopify, Wix, Paypal, Amazon Pay, Paytm, and Google Pay. Aside from India, Cashfree Payments’ products are used in eight other countries, including the United States, Canada, and the United Arab Emirates.

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