74% of All Joint Loans Disbursed in Tier 2 & 3 Cities; Co-lending Drives Financial Inclusion: Yubi Co.Lend Report

Chennai, December 20, 2022: Yubi, the world’s first unified credit platform has launched a “Mid-Year report on co-lending”. With a gross transaction value of over ₹10,000 crores till date, 54 lakh transactions as on Sep 22 and a peak of 1,00,000 transactions processed per day in Dec 22, Yubi Co.Lend continues to be the biggest end-to-end digital co-lending player in India. With over 300+ co-lending partners and 50+ lenders on the platform, Yubi Co.Lend’s mid-year report is representative of the trends noticed in the industry.

The report notes that the digital lending guidelines and First Loss Default Guarantee (FLDG) norms have allowed co-lending to gain traction. Co-lending through the Yubi Co.Lend platform saw a 10x increase in value of transactions and a 16x increase in the volume of transactions in H1 of FY22-23. As per the report, the platform disbursed upwards of ₹10,000 crore worth of joint loans and processed over 54 lakh transactions as on Sep '22.

Commenting on the tremendous growth, Irfan Shaik Mohammed, Chief Business Officer, Financial Services, Yubi said, “Year on year we have seen disbursements through co-lending increasing. The model’s unique ability to reduce risk while at the same time increasing debt leverage for lenders makes it the perfect value proposition to increase financial inclusion and deepen India’s debt market. With the digital lending guidelines and new FLDG norms, the power of co-lending is now being extended to consumers as well. This report is a testament to the impact that co-lending models can have when enabled through tech platforms. It can unlock immense possibilities to make the model far more accessible and scalable.”
Here are a few interesting insights from the report:

74% of all loans disbursed to borrowers through these models were from Tier-2 and 3 cities. Co-lending proves to be the perfect enabler of financial inclusion
•    Due to its dual capability of reducing risk and increasing leverage on debt, colending has proven to be a perfect tool to increase financial inclusion in India
•    Tier-3 cities had the highest loan disbursement at 46.6% followed by Tier-2 cities at 27.3% and Tier-1 cities at 18.9%
60% of all loan disbursement volumes were issued to consumers. Digital lending guidelines and FLDG norms makes co-lending the preferred model for consumer lending 
•    Loans against property (LAP) and loans to SME were at 14.4% and 9.4% respectively making them the second and the third largest sectors for lending through the model
66% of all loans disbursed were for borrowers between the age group of 18-30 years. Digital co-lending platforms perfect to reach young borrowers
•    38.5% of all loans disbursed through the Yubi Co.Lend platform were disbursed to borrowers between the age group of 25-30 years
•    This was followed closely by the age group of 18-24 years, contributing to 27.3% of the overall loans disbursed

12% of the overall loans were disbursed in Maharashtra, making it the top state for loan disbursement through co-lending 
•    Karnataka and Tamil Nadu were the second and the third largest borrowing states contributing around 20% (combined) of the overall disbursements

Yubi Co.Lend has 14 new lenders on its platform, including the likes of SBI, as of Sep '22 and 55 new clients/originators, taking the total number of potential originators to 300+, making it the largest co-lending facilitator in India that provides an end-to-end digital journey to its clients.