Hi nirvana_laha,
Chances of credit enhancement are pretty less, as currently most of the colending arrangements follow the option akin to direct assignment
In the direct assignment, any form of credit enhancement is not allowed. Colending banks specify some stringent criteria on certain metrics of MSME such as debt equity ratio, interest coverage ratio etc
NBFC’s for maintaining long term relationship with banks, will do good credit underwriting
Regarding banks taking away good MSME customers, that depends on banks may be. As part of colending, nbfc provide all details about MSME to bank. Loan details will be shared to credit information companies by both banks and nbfc. Bank may mine that data and use it for cross selling.
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