18.9 Co-lending share accounting

For each co-lent loan, the LMS maintains two share-level ledgers (originator + partner) plus a consolidated borrower ledger. This page is the share-accounting mechanic.

Each lender’s books must reflect their exact share at all times.
Settlement between lenders depends on share-level data.
Regulatory reporting (DNBS / bureau) requires per-lender data.
Audit must show clean reconciliation between lenders.
DLG invocation depends on share-level NPA accounting.

Data model

Per co-lent loan:

loan_account {
    id: 1234560
    sanction_amount: ₹25,00,000
    current_outstanding_total: ₹15,00,000 (derived from share ledgers)
}

loan_allocation {
    loan_id: 1234560
    partner_lender_id: 7
    originator_share_pct: 20
    partner_share_pct: 80
    originator_share_outstanding: ₹3,00,000
    partner_share_outstanding: ₹12,00,000
    booked_at: 2026-04-12
}

loan_event (per event, share-attributed):
    {
        loan_id, event_type='accrual',
        payload: {
            originator_amount: ₹160,
            partner_amount: ₹640
        }
    }

Each loan event records both shares’ contribution (where applicable).

For each co-lent loan:
    total_interest_daily = total_outstanding × rate / 365
    originator_interest_daily = originator_share_outstanding × rate / 365
    partner_interest_daily = partner_share_outstanding × rate / 365

    emit event: accrual(loan_id, total=total_interest_daily,
                        originator=originator_interest_daily,
                        partner=partner_interest_daily)

When borrower pays:

Combined waterfall first:
    Penal, fees, interest, principal allocated per total view.

Then share-attribution:
    For each component (interest, principal, etc.):
        originator_share = component × (originator_share_pct / 100)
        partner_share = component × (partner_share_pct / 100)

    Reduce each lender's outstanding accordingly.

Worked example

Co-lent loan ₹25 lakh, 80:20 partner:originator. Outstanding split: partner ₹19,20,000, originator ₹4,80,000. Borrower pays EMI of ₹40,000.

Total interest accrued: ₹42,000 (partner ₹33,600, originator ₹8,400).

Allocation:

Interest collected: ₹40,000
  Partner share: ₹40,000 × (33,600 / 42,000) = ₹32,000
  Originator share: ₹40,000 × (8,400 / 42,000) = ₹8,000

Remaining interest arrears (each lender):
  Partner: ₹33,600 - ₹32,000 = ₹1,600
  Originator: ₹8,400 - ₹8,000 = ₹400

Each lender’s books updated independently:

Originator’s GL postings:

Dr Bank (collection escrow) - originator share  ₹8,000
   Cr Accrued Interest Receivable                ₹8,000

Partner’s GL postings (in partner’s own books):

Dr Bank - partner share                          ₹32,000
   Cr Accrued Interest Receivable                ₹32,000

(Partner’s accounting happens in partner’s own systems; originator sends partner the MIS to enable partner-side posting.)

Daily settlement

Each day at the settlement-batch time:

For each partner:
    yesterday_partner_share_collected = sum of partner's allocation portions from yesterday's repayments

    minus: servicing_fee_retained_by_originator (if applicable per agreement)
    minus: DLG_provision_retained (if applicable)

    net_amount_due_to_partner = ...

    Settlement instruction:
        From: Co-lending escrow account
        To: Partner's main account
        Amount: net_amount_due_to_partner

After settlement, both lenders’ books reflect the correct ownership.

Classification — lockstep

When daily classification runs for a co-lent loan:

days_overdue = compute as for any other loan
new_class = classify per IRACP

The same classification applies to both lenders’ shares. There is no scenario where originator’s share is Standard while partner’s share is NPA.

On classification change:
    Update loan_account.current_classification
    Emit event: classification_change(loan_id, new_class)
    Push update to partner's MIS (next batch).
    Both lenders post provisioning per IRACP.

For each co-lent loan:
    For originator:
        originator_provision = originator_share_outstanding × provisioning_rate(class)

    For partner:
        partner_provision = partner_share_outstanding × provisioning_rate(class)
        (Partner computes and posts in partner's own books.)

Each lender’s prudential capital is affected by their share’s provisioning.

DLG impact

If a DLG arrangement covers the partner’s portfolio with the originator providing 5% DLG:

When loan NPA classified + DLG eligibility window elapses (per agreement, e.g., 120 days):
    1. Originator funds the DLG draw (debit FD lien or cash).
    2. DLG amount credited to partner's share outstanding (reduces partner's NPA).
    3. Originator records the DLG outflow.

GL postings on DLG invocation:
    Originator:
        Dr DLG Outflow (Expense / Asset reduction)  [DLG amount]
           Cr Cash / FD                              [DLG amount]

    Partner:
        Dr Bank (DLG receipt)                       [DLG amount]
           Cr Loan Outstanding (partner share)      [DLG amount]

Originator’s DLG cap monitored (2.5 DLG).

Partner MIS — daily

Each day, originator sends partner an MIS file with per-loan share-level data:

Column	Description
`partner_loan_account_id`	Partner’s identifier
`originator_application_id`	Originator’s identifier
`outstanding_principal` (partner share)
`outstanding_interest_accrued` (partner share)
`dpd_days`
`classification`
`repayments_today` (partner share)
`charges_today` (partner share)
`last_payment_date`

Partner uses this to update partner’s books.

Reconciliation between lenders

Periodic (typically monthly):

For each loan:
    Originator's records → Partner's records
    Compare:
        outstanding (partner share)
        accrued interest (partner share)
        repayments YTD (partner share)
        classification

    Mismatches flagged for investigation.

Reconciliation is critical for trust between lenders. Persistent mismatch is a contractual issue.

Settlement file format

Daily settlement file submitted to sponsor bank:

Header: settlement date, partner ID, total amount
Detail records: per loan summary (loan_id, amount, ref)
Trailer: count, total

Bank executes NEFT / RTGS from co-lending escrow → partner main account.

What the LMS must enforce

Share-level postings for every accrual / repayment / charge / classification event.
Total outstanding reconciles to sum of share outstandings always.
Lockstep classification — same class for both shares same day.
Daily MIS to partner with all required fields.
Settlement file generation + execution monitoring.
DLG monitoring per arrangement.
Reconciliation report monthly minimum.

Compliance touchpoints

RBI Co-Lending Guidelines (2.6).
DLG Guidelines (2.5).
IRACP — applied per share.
Bureau reporting — share-level data for each lender.

18.9 Co-lending share accounting

Why share-level accounting