IPPB, LICHFL merger for mortgage loans
India Post Payments Bank (IPPB) and LIC Housing Finance Ltd (LICHFL) on Tuesday announced a strategic partnership to provide home loans to more than 4.5 million IPPB customers.
Under the MoU, the underwriting, processing and disbursement of all home loans will be handled by LICHFL, with IPPB being responsible for procurement.
IPPB, which has an extensive network of 650 branches and more than 1.36 lakh of bank access points, will make LICHFL’s mortgage products accessible to all of its customers in India, according to a joint press release.
The IPPB field workforce, made up of nearly 2 lakhs of postal employees (Postmen and Gramin Dak Sevaks), equipped with micro ATMs and biometric devices and offering a home banking service , will play an important role in providing LICHFL home loans, he added.
IPPB currently distributes a variety of general and life insurance products through partnerships with leading insurance companies, and the credit products are a natural extension for last mile customers, the statement said.
J Venkatramu, MD & CEO, IPPB, said: “Easy access to credit for buying a home is an important prerequisite for achieving inclusive growth.
“… The partnership with LICHFL is an important step in IPPB’s journey to become one of the largest platforms for our customers to use credit products to meet a variety of needs …”
Y Viswanatha Gowd, MD & CEO, LICHFL, said this strategic MoU with IPPB will help LICHFL deepen its market penetration.
“… We view this strategic partnership as an important step that will help grow our business over the long term and improve our market share.”
“This is in line with the company’s goal of increasing business contribution from Tier 2 markets and beyond,” Gowd said.