Edelweiss Housing Finance, SBI partner to make mortgages in priority sectors more accessible

Edelweiss Housing Finance Limited (EHFL), a subsidiary of Edelweiss Financial Services Limited, today announced a strategic agreement with State Bank of India (SBI), for the co-lending of priority sector housing loans to independent entrepreneurs and to salaried customers.

This alliance will leverage the combined reach of both partners in both Tier II and Tier III markets to ensure timely disbursement of housing credit to customers, it said in a press release.

This partnership between EHFL and SBI involves the sharing of risks and rewards and aims to create a conducive lending environment for Indians to realize their home ownership ambition. The alliance is a win-win for both partners and customers.

For EHFL, the co-loan represents an alternative disbursement model that is asset light and creates a strong revenue model for a sustainable business, while for SBI, which provides lower cost capital flows, the partnership offers a wider clientele via the EHFL. Most importantly, for customers, the co-loan offers the simplicity of dealing with a single entity for their financing needs up to Rs. 35 lakhs, in addition to benefiting from cost-effective blended interest rates, the statement adds.

Dinesh Khara, Chairman, State Bank of India, 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”.

Speaking on the development, Rajat Avasthi, MD&CEO, EHFL said, “We are delighted to partner and work with the largest public sector bank in India. Owning a house is a milestone and a dream for every Indian. And this partnership will help us achieve this deeply rooted aspiration for Indian people. I believe that the ease of access to mortgages will also lead to increased demand in the real estate sector, which is also a key driver of economic growth.

The co-lending model is a scalable arrangement that combines the expertise of public sector banks with the strong origination expertise and reach of HFCs.

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Posted: Friday, March 25, 2022, 12:05 PM IST

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