Finkurve Partners with Godrej Finance for Gold Loans Under RBI Framework

Finkurve Financial Services Ltd has announced a strategic co-lending partnership with Godrej Finance Ltd to offer gold loans under the Reserve Bank of India’s co-lending framework. The arrangement involves Godrej Finance holding an 80% participation, while Finkurve retains a 20% share. This partnership is structured to share risks and rewards according to the agreed framework and regulatory guidelines issued by the Reserve Bank of India.

The financial terms of the partnership specify that Godrej Finance will manage the majority of the loan portfolio with an 80% stake. Finkurve will maintain a 20% share, ensuring a balanced distribution of risks and rewards. The collaboration is designed to enhance capital rotation and liquidity management, providing cost-efficient funding while maintaining a conservative risk profile.

Operationally, Finkurve will lead the loan sourcing and origination process through its branch-led operating model. This includes customer acquisition, onboarding, KYC processes, and gold valuation. Credit assessment and sanctioning will be conducted under a mutually agreed credit framework, ensuring disciplined underwriting and aligned risk management. Disbursements and servicing will be executed through a structured mechanism, with Finkurve responsible for collections and ongoing customer engagement.

The partnership is set within the context of Finkurve’s focus on expanding its gold loan portfolio. By leveraging the RBI’s co-lending framework, Finkurve aims to pursue growth while maintaining capital efficiency and effective cost management. The collaboration is intended to support calibrated growth without a proportionate increase in balance sheet deployment, enhancing the company’s ability to deliver sustainable returns.

The timeline for the implementation of this partnership has not been explicitly stated in the filing. However, the announcement indicates that the partnership has already gone live, with both parties actively participating in the co-lending framework. The collaboration involves robust governance, compliance oversight, and joint portfolio monitoring processes to ensure transparency and regulatory compliance.

Godrej Finance Ltd, a subsidiary of Godrej Capital, focuses on broadening its secured lending portfolio. The company aims to serve the gold loan segment in a structured and transparent manner, leveraging its partnership with Finkurve to build a scalable and high-quality loan portfolio.

Finkurve Financial Services Ltd, also known as Arvog, is a non-banking financial company registered with the Reserve Bank of India as a non-deposit-taking, middle-layer NBFC. The company primarily focuses on gold loans, which form the majority of its assets under management. Finkurve also offers personal loans and has strategic partnerships with fintech companies to expand its financial solutions. The company is committed to providing accessible, technology-driven financial services across India.