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 >
