Cashfree Payments launches automated escrow administration answer for co-lending

Cashfree Payments, a number one funds and API banking options firm, has launched ‘Co-lend’, India’s first absolutely automated escrow administration answer for co-lending that facilitates immediate disbursal with auto reconciliation and a dashboard for managing a number of partnerships.

Co-lend, developed according to the digital lending tips introduced by the Reserve Bank of India, requires no guide intervention, mechanically notifies the mortgage administration system, and eliminates reconciliation efforts, the corporate stated.

Currently, in co-lending partnerships, the reconciliation of funding to the escrow accounts for disbursement and repayments is completed manually, leading to errors and delays. The lender and originator pool cash into the co-lend escrow, after which disbursals and collections occur from and into the escrow. In this course of, the Loan Management System (LMS), the Loan Origination System (LOS), and the precise mortgage disbursal in addition to reimbursement are disconnected, leading to reporting delays and challenges in accounting and reconciliation for every participant within the partnership. Cashfree Payments’ Co-lend addresses all these challenges and makes the complete course of automated, growing effectivity and accuracy.

‘Co-lend’ supplies a strong platform for co-lending originators and lenders, particularly those sanctioning excessive volumes of loans, the place real-time disbursement, reimbursement and reconciliation are major necessities. Cashfree Payments has additionally partnered with Loan Management Service and Loan Origination Service suppliers in addition to banks to allow a plug-n-play providing for lenders to handle all their co-lending and add new companions with ease. The present set of banks that already help a Co-lend integration are ICICI Bank, Kotak Mahindra Bank, Yes Bank, IndusInd Bank, and Axis Bank.

Akash Sinha, co-founder and CEO of Cashfree Payments, stated, “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.”

With over 50% market share amongst fee processors, Cashfree Payments as we speak leads the way in which in bulk disbursals in India with its product payouts. Recently, India’s largest lender, SBI invested in Cashfree Payments, underscoring the corporate’s function in constructing a strong funds ecosystem. The firm works intently with all main banks to construct the core funds and banking infrastructure that powers the corporate’s merchandise and can also be built-in with main platforms corresponding to Shopify, Wix, Paypal, Amazon Pay, Paytm and Google Pay. Apart from India, Cashfree Payments’ merchandise are utilized in eight different international locations together with the US, Canada and the UAE.

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