Hi Wilfred and All,

There is no specific feature available for co-lending but Fineract offers a
new Functionality "Asset Externalization" which allows organizations to
sell their loans(portfolios) to other Funders.
But right now it is built only to support 100% of loan Sell and Buybacks
but doesn't yet support the sharing of two owners to the same loan account.

I believe the current "Asset Externalization" which is fully functional can
be extended further to support owner sharing based on % as well.

Attached links contains More Details of Asset Externalization for your
reference

https://drive.google.com/file/d/1G0yXqHx9u-3_3fAH8oeA8T5hHh9Ij4Kp/view?usp=drivesdk

https://drive.google.com/file/d/1aNrj5ygssOic39J6gRARTdNV5d77ewAs/view?usp=drivesdk

Regards,
Bharath
Lead Implementation Analyst | Mifos Initiative
PMC Member | Apache Fineract
Mobile: +91.7019635592
http://mifos.org  <http://facebook.com/mifos>
<http://www.twitter.com/mifos>

On Thu, Sep 11, 2025, 5:13 PM Paul <[email protected]> wrote:

> Co-lending - Split participations are relatively complex.
>
> Lender A may be invested at a 9% yield and be the servicer charging
> serving fees.
> They may keep late fees or split them based on ownership %.
> Lender B may be at a 7.5% yield with Lender A retaining rate spread.
>
> Participations may have multiple investors . . .  and of course the
> customer's accounting is NOT impacted in any way by the investor or number
> of investors.
> Then there are multiple reporting and compliance requirements to consider.
>
> I'm not familiar with what Fineract can support today, but IMO the effort
> would need a dedicated group/team, servicing domain expert, months of
> planning and requirement writing, then build and test. Testing would take
> months and that is assuming +50% or more could be automated.
>
> Regards
> Paul
>
> On Thu, Sep 11, 2025 at 1:38 AM Kigred Developer <
> [email protected]> wrote:
>
>> @Bharath Gowda <[email protected]>
>>  I am suspecting you could be familiar with the co-lending subject. Do
>> you think this qualifies as a new feature (or something worthy of being on
>> a road map)?.
>> The first time I interfaced with the term, it sounded exotic it sounded
>> new but a couple of days later after discussing it with a colleague, it
>> looks like something that can be accomplished by combining a couple
>> existing features i.e (Accounting and a bit of automation if necessary).
>>
>> This is what I have so far understood about CO-LENDING:
>> 1. BANK A issues a loan to a customer but this loan is not funded by BANK
>> A alone.
>> 2. There is another BANK B, that is providing the additional funds to
>> make this happen (hence the term CO-LENDING).
>> 3. To simplify it we can assume that BANK A took a loan themselves from
>> BANK B (payable with interest).
>> 4. The customer that took the may not even need to know that there is
>> BANK B in the picture, his only obligation is to repay the loan they took
>> with interest following the set installments.
>> 5. Depending on the terms agreed between BANK A and BANK B, every time
>> the customer makes a repayment to the loan they took, the outstanding
>> balance will reduce and everything updated (normally), but  additional
>> accounting entries will be needed, that is BANK A settling their
>> obligations to BANK B.
>>
>> That is all I believe there is to it, am I missing something?
>> Regards
>> Wilfred
>>
>
>
>

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