Northern Arc Capital, a non-banking finance company (NBFC) focussed on under-served households and businesses, has entered into a strategic partnership with Indian Bank.  

In a press statement on Thursday, Northern Arc Capital said the partnership would enable the two financial institutions to collaborate, co-operate, co-lend loans, and widen their respective markets and customer base.

Indian Bank would get access to Northern Arc’s n-POS platform, which helps NBFCs, fintech, digital lenders, and investors co-lend to retail borrowers. The platform offers fully integrated systems for partners and investors with real-time KYC validation and instant disbursement features.  

“Both institutions have complementary strengths and capabilities, which can be leveraged to expand our market, diversify the product suite and ensure a high-quality customer experience,”  said MD & CEO, Northern Arc Capital, Ashish Mehrotra, said in the statement. 

“The n-POS platform is a critical infrastructure for the industry and will solve key integration issues that hamper co-lending partnerships,” he added. 

Northern Arc added that it provides investors access to NAC Score, its proprietary solution that enables assessment of a borrower’s financial strength and propensity to repay. The scoring uses AI and ML algorithms and delves into over 25 million data points accumulated by Northern Arc over the past decade, working with more than 250 partner institutions across the country.

The n-POS platform also helps investors with periodic reporting and reconciliations and has so far enabled over 7.5 million loans.

“We are happy to join hands with Northern Arc for end-to-end digital products like personal loans. We expect that with this joint venture, we can increase the digital-based portfolio to a new level,” Imran Amin Siddiqui, Executive Director, Indian Bank, said in the statement.