SBI signs co-loan pact with 5 HFCs for home loan advancement
The State Bank of India (SBI) said it has entered into a co-loan agreement with 5 housing finance companies (HFCs) for providing home loans. The arrangement with PNB Housing Finance Ltd., IIFL Home Finance Ltd., Shriram Housing Finance Ltd., Edelweiss Housing Finance Ltd. and Capri Global Housing Finance Ltd., would help sanction home loans to the unserved and underserved sector in accordance with the RBI. guidelines, the lender said.
“Scarcity of affordable housing continues to be a major concern for India, especially for the economically weaker sections (EWS) and informal sections of society. To further enhance penetration in this segment, SBI is actively seeking co-lending opportunities with multiple HFCs,” the bank said in a statement.
“This collaboration will enhance our distribution network as we aim to extend our credit reach to more home loan borrowers from unserved and underserved segments,” said Chairman Dinesh Khara.
“These partnerships align with our commitment to accelerate effective and affordable credit for small buyers in India and contribute to the vision of housing for all by 2024,” he said.
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 goal of the co-loan model is to give the borrower the best interest rate and reach, depending on the lender.