Bharat - Thanks for sharing this information. It should be part of the documentation that we offer at Fineract.
Are these already on Jira tickets? If so, that's a good first step. Then, do we move a summary to Asciidoc or to the Apache Fineract wiki "user pages"? thanks, James Dailey On Fri, Sep 12, 2025 at 10:05 AM Bharath Gowda <[email protected]> wrote: > 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 >>> >> >> >>
