Introduction to
Consortium Lending
A collaborative approach to large-scale financing, risk sharing, and collective expertise in the banking sector.
Guidelines for Consortium Advances
Consortium form of lending means financing of a single borrower jointly by two or more banks with or without financial institutions. It is a concept that promotes collective application of banking resources.
The concept of consortium lending is dynamic and arises from a deliberate refinement in credit appraisal and lending approaches. Over time, the system has brought about better regulation of credit flow to borrowing units through collective expertise.
It is accepted as a culture and philosophy of banking by which banks pool resources and collectively apply expertise to ensure the safety and productivity of credit.
Consortium Arrangements
Presently, the following consortium arrangements are in vogue in the Indian banking landscape:
RBI Formation & Compliance (2026)
The Reserve Bank of India shifted from rigid mandates to a framework driven by risk-sharing, digital transparency, and credit discipline:
- Mandatory routing for borrowers with exposure of ₹10 Crores and above.
- Project Finance Shares: Minimum 10% for system exposure up to ₹1,500 Cr.
- For projects above ₹1,500 Cr, minimum share is 5% or ₹150 Cr (whichever is higher).
- Weekly Reporting: Mandatory weekly credit information updates to CICs (effective July 2026).
- TCI via AA: Transfer of Credit Information is now processed via the **Account Aggregator** framework.
- Current Account Restriction: Only banks with ≥10% exposure can maintain current accounts for large borrowers.
- LEF Compliance: Aggregate exposure must stay within the **Large Exposure Framework** (LEF) limits.
- PTPFC Monitoring: Lead Bank must use the **Public Tech Platform for Frictionless Credit** for real-time monitoring.
Forensic & Risk Diagnostic Hub
Consortium appraisal requires multi-bank data synchronization. Access the full suite of forensic scorecards, asset quality analyzers, and MPBF assessment engines to ensure collective credit safety.