Union Bank partners with Home First Finance to offer home loans: check out the benefits

Union Bank of India (UBI) and Home First Finance Company India Ltd (HomeFirst) are entering into a strategic co-lending partnership to offer home loans to customers at competitive interest rates. The partnership aims to leverage the strengths of both entities to provide a seamless experience for retail mortgage lending customers in the priority area.

This partnership will allow HomeFirst to expand its product offerings to customers in the geographies where it operates, while continuing to leverage its technology-driven, customer-centric approach. UBI (established in 1919) is one of the oldest and largest public sector banks in India with a total deposit base of over 9.14 Lakh Crores and Pound Advances (AUM) of 6.35 Lakh Crores as of Sep 21.

Under this partnership, HomeFirst will issue loans in accordance with UBI’s agreed credit policy in accordance with the provisions of the RBI co-loan model. HomeFirst will keep a minimum of 20% of the loan on its book while 80% will be on UBI’s book. HomeFirst will act as the servicing agent for loan accounts originating from this partnership throughout the life of the loan.

The partnership is an outcome of the co-lending framework established by the Reserve Bank of India (RBI) which provides a collaborative model to benefit from a bank’s low cost funding model and cost effective supply and service capabilities. from a non-Bank.

Manoj Viswanathan, MD and CEO, said, “We are delighted to partner with Union Bank of India. We can now leverage Union Bank of India’s deposit-focused franchise and complement it with our strong technology-focused distribution to deliver effective home lending solutions to a wider range of customers. This partnership is one more step in our mission “to be the fastest provider of home financing for the budding middle class, with ease and transparency.”

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