Q. What is the primary difference between On-lending and Co-Lending in the context of Priority Sector Lending in India?
Answer: On-lending is loans to intermediaries; Co-lending is a partnership between banks and NBFCs.
Notes: On-lending refers to banks providing loans to intermediaries like NBFCs for further lending, while co-lending involves banks and NBFCs collaborating to jointly disburse loans, leveraging each other's strengths.