Govt to encourage banks to use co-origination model of financing to address MSME needs SECTIONS Share Synopsis Co-origination or co-lending model is a financial system of leveraging the comparative advantages of both the banks and non-banking finance companies (NBFCs) in a collaborative effort. "I am pushing all the banks to be ready to handle co-originating models of financing because NBFCs have their advantage with their spread in tier 2 and tier 3 cities where some of the banks are not present," FM Nirmala Sitharaman said. Kolkata: The government will be encouraging banks to use the co-origination model of financing to address the needs of the micro, small and medium enterprises (MSME) in the country, especially in smaller towns.