Greetings from team Yubi Co.lend! 

We hope you are having a delightful experience on Yubi Co.lend’s platform.

This month, we automated the co-creation agreement process on Yubi Co.Lend, to make your co-lending journey even easier.

The process of co-lending agreement on Yubi Co.Lend has so far been facilitated by Yubi Co.Lend’s Partnership and Business teams. Once there is an expression of interest in a deal by the lender, and the originator has approved it, the Partnerships team floats the co-creation sheet which enlists various configurations that impact their co-lending relationship.

The Yubi Tech team then takes up the co-creation sheet to set up the program on the backend. Once the co-creation agreement has been pushed to production, the originator and investor are able to transact.

We have been committed to reducing the turnaround time for the co-creation agreement to go live. However, the presence of multiple stakeholders along with keeping the Business and Tech teams involved extends timelines. 

Yubi now has a permanent fix to this! Through our latest update vis-à-vis self-serve co-creation partnership flow, we are making the co-lending agreement process seamless for all the stakeholders involved in Yubi Co.Lend.

Read on to know more!

The New Co-Creation Partnership Flow

With the new co-creation partnership flow feature, originators and investors are able to configure the various aspects of the co-lending agreement by themselves, eliminating the need for partnership/business and tech teams to negotiate or implement on their behalf. 

For the co-creation agreement to be taken forward, there are two mandatory prerequisites:

  •     The expression of interest by the originator must be approved by the investor;
  •     Product setup must be completed and submitted by the originator. 

Here’s how this will fare for our stakeholders:

  1. Investors can view and manage the agreements of co-creation of their final agreement;
  2. Investors can add commercials for smoother disbursement and collections;
  3. Originators can view and manage agreements at various stages of co-creation;
  4. Investors, originators, and the Business team can view the history of changes made to the co-creation agreement;
  5. Investors can set up a pre-disbursement configuration on the platform;
  6. Investors can add disbursement configuration on the platform;
  7. Investors can add configurations to decide the split strategies and charges applicable for collections;
  8. Investors can add configuration for settling invoices.

Let’s dive deeper into each of the use cases! 

1. Investors Can View and Manage the Agreements of Co-creation of their Final Agreement

A co-creation agreement consists of multiple statuses. Under the co-creation partnership flow, the update will display the partnerships where the agreements are under their particular status heads, such as New, Approved, Live, etc.

For each product, the agreements can be displayed with tags of either originator or investor for enhanced transparency and clarity.

The following are the statuses established to enable a real-time view and actioning of the partnership agreement:

  • New: Both the prerequisites are met (Expression of interest is approved by the originator and product set up is completed and submitted by the originator)
  • Draft: At least one section of the agreement is saved for the first time or edited post approval or rejection
  • In-review: The agreement has been submitted for review
  • Approved: The co-lending agreement has been approved by the originator
  • Live: The agreement is approved by the originator, product workflow is mapped, and API/excel contract has been signed off 
  • Rejected: The agreement has been rejected by the originator


The co-creation partnership flow will look like this:

Partnerships with the corresponding status

Under each partnership, its corresponding products are displayed

Under each product, a new section called ‘agreement’ is added

Under the ‘agreement’ section, the configurations for the agreement can be viewed

The agreement is represented by product, and ‘originator’ or ‘investor’ tags


2. Investors Will be Able to Add Commercials for Smoother Disbursement and Collections

Yubi Co.Lend will feature a new section called ‘commercials’ on the co-creation partnership flow. 

Under this section, there are two fields that will help investors set up the participation attributes of the agreement and submit it for review by other stakeholders. These fields are:

  • Participation ratio (%) ranging from 0% to 100%
  • Investor lending rate (%) which should be less than or equal to the product lending rate

The investor will instantly receive a success message upon submitting the co-creation agreement for review. The originator and business team will receive notifications to review and approve the agreement submitted by the investor.

Here are some important aspects investors should remember when amending an agreement that has been submitted for review:

  • There is no cap on the number of edits an investor can make to an agreement. An agreement, once live, cannot be edited.
  • Regardless of the status of the agreement, opening it for effecting any changes will bring the agreement back to drafts.
  • If an investor makes edits to an agreement after it has been approved by the originator, the business team and originator will be sent a notification by the system.


3. Originators can View and Manage Agreements at Various Stages of Co-Creation

For each product, there will now be a new section called ‘agreement’. This section will help the originator to view their list of agreements whose statuses are either ‘in-review’, ‘approved’, or ‘live’; and filter them based on these statuses.

The ‘Transaction’ section, will now be known as ‘Partnerships’ which will have three sections:

  • In-review agreements
  • Approved agreements
  • Live agreements

The originator can comment on either of the sections and give the final approval to the agreements. The originator also has the choice of only going through the changes highlighted by the investor to reduce the effort and time taken for review. An originator may also reject an agreement by giving a reason to allow the investor to make changes and re-submit for approval.  

Also, the originator will be notified at each stage of the agreement with a success message.

A section called ‘approved partnerships’ will have the number of agreements that have been approved by the originator.

Note: Before an originator clicks on an option to accept the expression of interest, they will be nudged to complete their product setup. Originators cannot accept an expression of interest by the investor if they have not completed the product setup. Consequently, no co-creation agreement will be in place.

4. Investors, Originators, and the Business Team Can View the History of changes Made to the Co-creation Agreement

The latest update on the Yubi Co-Lend platform will allow the investor, originator, and Yubi’s business team to track and have a clear view of the history of changes made to co-creation agreements for audit purposes. The history of changes between two approved versions of an agreement includes the following details:

  • Section
  • Field
  • Old Value
  • New Value
  • Timestamp
  • Modified by (only an investor entity)
  • Approved by (only an originator entity)


5. Investors Can Set up a Pre-Disbursement Configuration on the Platform

The new ‘pre-disbursement’ section will have KYC checks in place, that will contain KYC verification attributes. The borrower and guarantor’s PAN, Voter ID, and Driving License, and the business’ PAN, GSTIN, and CIN attributes can be chosen for verification.

For lenders, the following credentials can be configured:

  • Bank validation (Bank account name comparison threshold ranging from 0 and 5)
  • Multi-level credit underwriting (Choose if credit bureau data is required for underwriting)
  • Approval mechanism
    • (Approval based on minimum auto approval score ranging between 0 and 5)
    • (Rejection based on maximum auto rejection score ranging between 0 and 5)
  • Auto property approval (applicable only for Loans Against property)
  • Approval for repossession requests (applicable only for the two-wheeler sector)
  • Agreement verification mechanism (choose if you want auto disbursement ready)
  • Tranche loans treatment (choose if you want to re-run KYC and credit filters for tranche loans)
  • Top-up loan treatment: (choose if you want to re-run KYC and credit filters for top-up loans)

6. Investors Can Add Disbursement Configuration on the Platform

The following fields are added for the investor to manage the disbursement at their end:

  • Disbursement – Adding a new ‘disbursement’ section in the co-creation agreement will allow configuring who owns the disbursement control (either investor, originator, or CredAvenue team). The investor can also choose the mode of disbursement.
  • Define charges applicable to the investor during the disbursement

    • Stamp duty (If and how the investor gets a share in the stamp duty)
    • Documentation charges (If and how the investor gets a share in the documentation charges)
    • Processing fee (If and how the investor gets a share in the processing fee)
    • Insurance charges ((If and how the investor gets a share in the insurance charges)
    • NACH/ECS charges (If and how the investor gets a share in the NACH/ECS charges)
    • DCC charges (If and how the investor gets a share in the DCC charges)

7. Investors Can Add Configurations to Decide the Split Strategies and Charges Applicable for Collections

The following fields are added for the investor to smoothen the collection process:

  • Repayment Split Strategy, Interest and Foreclosure – This field helps investors decide how they would like to share the excess interest with the originator. They can also decide on the repayment split strategy for calculating interest and the foreclosure payment split strategy.
  • Payment Charges

    • Penalty charges (If and how the investor gets a share in penalty charges)
    • Bounce charges (If and how the investor gets a share in bounce charges)
    • Fee charges (If and how the investor gets a share in fee charges)
    • Overdue charges (If and how the investor gets a share in overdue charges)

8. Investors Can Add Configuration for Settling Invoices

The following fields are added for the investor to make invoice settlement more efficient:

  • Configuration

    Applicable invoice types include:
    • Servicer Fee/Processing Fee/Deficiency Fee/Overdue
    • Settlement/Penal Interest/Accrued Interest Settlement/Waiver
    • Settlement/Penal Invoice (Customer Delay), Penal Invoice (Originator Delay)
  • Servicer fee 

    • Investor’s share of service fee GST
    • Type of GST discounting (direct discount on GST, discount on bill value)
    • Type of servicer fee (equated interest split, investor interest split, fixed percentage)
  • Penal Interest Invoice – Investors have the option of opting for whether customer delay and/or originator delta is applicable for settlement. They can also mention the number of grace days and how the interest should be calculated.
  • Overdue Settlement Invoice – Investors may specify the number of days needed to classify an invoice as overdue.
  • Deficiency Fee Invoice – Investors may mention the base value to compute the First Loan Default Guarantee (FLDG), the number of days needed to classify an invoice as FLDG, and the components of the loan amount. The product also enables the business team at Yubi Co.Lend to view all the agreements of all statuses and follow up with the investor and originator to resolve any bottlenecks in the process and reduce the turnaround time.

Finishing Thoughts

We hope the latest upgrade helps make your co-lending journey smoother and brings enhanced efficiency in how you partner with originators and investors on the Yubi Co.Lend platform. Hope you start making the most of these features and enjoy using them as much as we enjoyed developing them for you!