Last updated on: July 21, 2025
Welcome to sokufin (the Site) SokuFin is a Digital Lending Application owned and operated by ASP FINCAP PRIVATE LIMITED. It facilitates loan origination for financing partners, offering a wide range of financial products to its customers including unsecured personal loans, business loan and secured loan (in the form of LAP) and specialized loans. SokuFin provides financial technology solutions enabling the use of instalment solutions for consumers, and provides a technology platform for finance, credit and lending perspective, it further provides customer acquisition and loan origination services to it financiers/ lending partners (“Financiers”). As Lending Service Provider (LSP) it offers the outsourced services including, monitoring and collection of loans to its various financing partners, in accordance with the terms and conditions set forth in the servicing agreement signed by the parties. By operating as LSP, SokuFin provides quick finance solutions to its wide range of customers within India further broadening its reach and capabilities in offering financial products.
This policy is framed in accordance with the Reserve Bank of India (Non-Banking Financial Companies - Transfer and Distribution of Credit Risk) Directions, 2025 - Co-lending Arrangements (“RBI Master Directions”), which provide a regulatory framework for co-lending between Regulated Entities (REs), including NBFCs. Under these directions, co-lending refers to an arrangement, formalised through an ex-ante agreement, between a Regulated Entity (‘RE’) which is originating the loans (‘originating RE’) and another RE which is co-lending (‘partner RE’), to jointly fund a portfolio of loans, comprising of either secured or unsecured loans, in a pre-agreed proportion, involving revenue and risk sharing.
As per the applicable RBI Master Directions, each RE under such an arrangement must retain a minimum of 10 percent share of the individual loans on its books.
The Company, being a registered NBFC-ICC, may enter into co-lending arrangements with eligible REs to expand credit outreach while ensuring prudent risk sharing and full regulatory compliance. It is clarified that on and from January 1, 2026, or from any earlier date as decided by the Company as per its internal policy (“effective date”), any new co-lending arrangement (CLA) entered into after the effective date shall be in compliance with the directions under Part B of the Master Directions. This policy outlines the guiding principles, operational framework, and governance standards for such arrangements, including provisions related to the transfer of loan exposures. Any subsequent transfer of loans originated under co-lending arrangements, whether to third parties or between REs, will be conducted strictly in accordance with the Reserve Bank of India (Non-Banking Financial Companies - Transfer and Distribution of Credit Risk) Directions, 2025 which covers aspects of Transfer of Loan exposures , and accordingly transfers to third parties shall require mutual consent of both originating and partner REs. This ensures transparency, borrower protection, and adherence to RBI norms throughout the loan lifecycle.
The Company shall collaborate with eligible banks, financial institutions, and NBFCs (“Lenders”) to explore co-lending opportunities across its existing and new products/segments, in accordance with the CLA Directions, and related guidelines. The Company shall ensure that all co-lending partnerships are formalized through ex-ante agreements and that appropriate due diligence is conducted on partner entities prior to entering into such arrangements. It is emphasized that the credit sanctioning process shall be carried out by the Company itself in pre-agreed proportion and as per pre-agreed under-writing terms and parameters and cannot be outsourced to partner REs. Additionally, all co-lending partners will comply with prescribed risk-sharing, operational, and reporting requirements under the Directions.
The co-lending arrangement would entail a joint contribution of credit at the facility level, by both the Company and the partnering Lenders. Each co-lending partner shall on-board the borrowers at each company level, conduct due diligence with the same rigour as would have been done for originating any loan under respective company’s credit policy and maintain each individual borrower’s account for their respective exposures.
To ensure transparency and prevent co-mingling of funds, all disbursements and repayments between the co-lending parties shall be processed through a distinct escrow account maintained with a designated bank. This mechanism ensures clear segregation of funds and timely reconciliation between the parties, in line with RBI Master Directions.
The partnership between the CLA partners shall be governed by a comprehensive agreement that clearly defines the operational, financial, and compliance framework of the co-lending partnership. The agreement shall include, but not be limited to, the following key terms and conditions:
SokuFIn’s role involves facilitating the screening and selecting the customers, sanctioning and disbursement of loans, as well as managing loan servicing, which includes EMI collection, account management, and ensuring adherence to regulatory requirements. SokuFIn shall facilitate the collection and distribution of customer payments according to the pre-agreed funding ratio. Additionally, SokuFIn handles repayment follow-ups and delinquency recovery, ensuring proactive borrower engagement and maintaining financial discipline within the co-lending framework.
The company and its Digital Lending Apps (DLA)/Lending Service Providers (LSP) leverage a comprehensive and data-driven forecasting methodology to project near accurate monthly loan demand. This approach integrates analysis of historical lending trends, evolving market dynamics, and customer behaviour insights to identify and segment potential borrower groups to match with the underwriting parameters (including the APR as also its components) of each of the LSPs. These segments are defined using borrower’s eligibility criteria jointly developed with each lending partner, ensuring targeted and precise alignment with both the lenders’ requirements.
This mechanism is continuously updated to capture current credit capacities and borrower profiles, thereby enabling fair, accurate, and timely customer-to-lender matching.
The sharing of risks and rewards is contingent upon adherence to the prescribed and permitted RBI guidelines. Any additional risks that may arise will be governed by the co-lending master agreement with
respective lenders and it will be distributed in the agreed-upon manner. The percentage of risk sharing can be different for each partner lender, but each partner lender must retain a minimum of 10 percent share of the individual loans on its books.
The co-lending institutions shall adhere to applicable KYC/ AML guidelines, as prescribed by RBI and any other regulation as stipulated by RBI from time to time. KYC cannot be outsourced and both the originating NBFC and the lending partner, being the regulated entities, at their option, may rely on KYC documents shared / customer due diligence done by the other lender, subject to conditions, specified by RBI in the Reserve Bank of India (Non-Banking Financial Companies – Know Your Customer) Directions, 2025.
REs/ Lenders participating in CLA shall comply with their respective Fair Practices Code (FPC) and maintain an appropriate grievance redressal mechanism in line with the regulatory framework governing them. With regard to grievance redressal, any complaint registered by a borrower with one of the lending partners (NBFC/ or the other Lender) shall also be shared with co-lending partner so as to enable the other partner to examine the complaint as per their FPC / Customer Grievance Redressal policy; in case the complaint is not resolved within 30 days, the borrower would have the option to escalate the same with the concerned Lender’s Ombudsman/ RBI’s Ombudsman for NBFCs including the Customer Education and Protection Cell (CEPC) of the RBI.
All complaints received from the borrower on Co-lending portfolio shall be processed as per mutually agreed terms with co-lending partner.
Notwithstanding the termination clause of the co-lending Master Agreement, both Lenders agree and acknowledge that the Borrower’s servicing shall be rendered till each loan originated under the co-lending agreement is completely repaid or settled as detailed in the SOP.
SokuFIn shall also provide appropriate disclosures in their financial statements on an annual basis under the section ‘Notes to Accounts’, covering details of CLAs on an aggregate basis.
These disclosures shall, at a minimum, include:
Performance metrics of loans under CLAs
Details of any Default Loss Guarantee (DLG) arrangements, where applicable.
The co-lending Policy shall be subject to periodic review in accordance with any regulatory or statutory requirement and shall be approved by the Board of the Company.
All extant & future master circular/directions/guidance/guidance notes issued by RBI from time to time would be the directing force and will super cede the contents of this policy.
SokuFIn is a private limited company, incorporated under the provisions of the Companies Act, 2013, having Corporate Identification Number (CIN) U65991CT1995PTC009511 (hereinafter referred “SokuFIn” or the/“Company”).
SokuFIn is in the business of providing secured and unsecured business loans and personal loans. As per RBI guidelines as applicable from time to time, the board of Non-Banking Financial Company (“NBFC”) after recommendation from the Board committee shall approve an interest rate model for the Company, taking into account relevant factors such as Weighted Average Cost of Funds (W-CoF), Risk Premium and Margin etc. to determine the Rate of Interest (RoI) to be charged for loans and advances. Further, the directives states that the rate of interest and the approach for gradation of risk and the rationale for charging different rates of interest for different category of borrowers should be communicated to the borrowers / customers in the sanction letters to them. This policy intends to provide a broad framework for interest rate model of the Company. This policy supersedes all prior written interest rate policies and would be implemented from immediate effect.
To arrive at the Rate of Interest to be charged for loans to different types of customer segments & on various loan products and to decide on the principles and approach of charging spreads to arrive at final rates charged to the customers.
The Board shall review the policy at least Annually or earlier as may be required for changes in the interest rate structure of the loans.
The Board of Directors oversees the Company's interest rate policy. Operational responsibilities for modifications within defined parameters are delegated to the Asset Liability Management Committee (“ALCO”) and Risk Management Committee (“RMC”) and presented to the Board for consideration and ratification. Any changes outside the established policy guardrails will be submitted to the Board for approval through the RMC, as proposed by the ALCO.
All aspects such as communication, revision etc. pertaining to the interest rate model shall be undertaken as per the Board approved Fair Practice Code of the Company. The clauses outlined in this policy are formulated in line with Fair Practice Code as approved by the Board.
The rate of interest is calculated based on various factors such as the Weighted Average Cost of Funds (W-CoF) of the company, operational expenditure, risk premium, and desired RoA/( Return on Equity) RoE, elaborated below:
We give loans to our customers through a fixed rate loan. We lend money through various products to cater to needs of different category of customers. The products offered by us and the interest rate charged on different products are as follows:
The rate of interest for the same loan product and same tenor availed during the same period by different customers may be different as it can vary for different customers based on risk gradation. Factors affecting calculation of spreads to arrive at final rate are as follows:
The individual assessment criteria for the customer credit grading can be classified based on these aspects. All applicants are classified into two categories: “A” – Superior, “B” – Normal.
The annualised rate (APR) will comprise of:
Besides interest, other charges* would be levied by the Company wherever considered necessary. Besides these charges, stamp duty, documentation charges, applicable GST and other cess would be collected at an applicable rate from time to time, as communicated in the documentation provided. Any revision in these charges would have a prospective effect and will be communicated to the borrower.
* e.g. processing fees, late payment charges, legal charges, lock-in fees, pre-payment / foreclosure charges, etc.
The company will ensure that the applicable rate of interest to any borrower should not exceed the maximum rate fixed for each product offered by the Company.
The customer will be provided with a clear option to exit a loan by repaying the principal and the applicable proportionate APR without incurring any penalties during this time. The cooling-off period will be at least three days for loans having tenor of seven days or more and at least one day for loans having tenor of less than seven days.
Interest rates would be intimated to the customers at the time of sanction / availing of the loan, along with the Key Facts Statement (‘KFS’) which would include Most Important Terms & Conditions (‘MITCs’) and included in the loan agreement.
Interest Rate Policy would be uploaded on the website of the company and any change in the rate of interest would be uploaded on the website of the Company.