SBI Signs Pact with Housing Finance Companies to Co-Lend Home Loans | India is blooming
Mumbai/IBNS: India’s largest lender, State Bank of India (SBI), has entered into a co-loan agreement with five housing finance companies (HFCs) to sanction home loans to the unserved and underserved sector in accordance to RBI guidelines.
These include PNB Housing Finance Limited, IIFL Home Finance Limited, Shriram Housing Finance Limited, Edelweiss Housing Finance Limited and Capri Global Housing Finance Limited.
Scarcity of affordable housing continues to be a major concern for India, especially for the economically weaker section (EWS) and informal sections of society. To further enhance penetration in this segment, SBI is actively seeking co-lending opportunities with multiple HFCs.
Speaking on the partnership, SBI Chair Dinesh Khara said, “We are pleased to have partnered with HFCs under the co-loan scheme. This collaboration will enhance our distribution network as we aim to expand our credit reach to more home loan borrowers from the unserved and underserved segments. Such partnerships align with our commitment to accelerate efficient and affordable credit for small buyers in India and contribute to the vision of “housing for all by 2024”.
The RBI had issued guidelines on the co-loan scheme for banks and HFC/NBFC for lending to priority sectors to improve the flow of credit to unserved and underserved sectors of the economy and put funds available to borrowers at an affordable cost. The co-loan model aims to give the borrower the best interest rate and reach.
The partnership signed in Mumbai was handed over by Dinesh Khara, Chairman of SBI, to the respective HFC officials as mentioned above.
Challa Sreenivasulu Setty, Managing Director, SBI, Saloni Narayan, Deputy Managing Director (RB), SBI, and Mahesh Goel, CGM (RE), SBI were present on the occasion.