IIFL Home Finance Ltd. has signed an agreement with India’s 2nd largest Public Sector Bank, Punjab National Bank (PNB) for Co-lending. IIFL Home Finance Ltd. expects to grow its loan book by 25% with these associations. 80% of the loan will be provided by Punjab National Bank and the entire loan sourcing and servicing will be managed by IIFL Home Finance.
IIFL Home Finance Ltd. will provide services to the customers through the entire loan cycle, from sourcing to documentation, and the collection to loan servicing. This association will let IIFL Home Finance further penetrate into affordable Secured MSME Loan and Home Loan markets, and will also strengthen IIFL’s HFL’s portfolio. With a focus on Andhra Pradesh, Madhya Pradesh, Gujarat and Karnataka, this arrangement will also help IIFL HFL offer attractive interest rates to its customers in 17 states.
This is the fourth time that an agreement has been by IIFL Home Finance Ltd. with other banks. Earlier this year, for sourcing and servicing of housing loans and loans against property, IIFL Home Finance Ltd. has signed agreements with banks such as ICICI Bank (second-largest private sector bank in India), Co-lending with Central Bank of India (one of India’s largest commercial banks for LIG* and MIG** sector) for home loans and for extending credit to MSME loans (loan against property) with Standard Chartered Bank (one of the leading foreign banks in India). IIFL HFL has disbursed loans totalling Rs.170 Crs to date under these arrangements.
Under Pradhan Mantri Awas Yojana, IIFL Home Finance Ltd. facilitated Credit Linked Subsidy benefits to over 44700 beneficiary households in 17 states, with the subsidy amount totalling over Rs.1068 crore. The company has disbursed home loans to more than 182000 customers to date and has an AUM of Rs. as on [30 Jun 2021]. As a fintech housing finance company, IIFL Home Finance is dedicated to making its customers’ journey of owning a home as seamless as possible by leveraging their future-ready technology system, which offers 100% digital onboarding of its home loan customers.
Speaking on the development, Mr Monu Ratra, CEO & ED at Home Finance Ltd said, “We are extremely excited and honoured about this tie-up especially when it’s PNB’s first co-lending arrangement. This will enable us to further extend our affordable home loans to many more customers and we firmly believe in this model of synergies which shall be fit for both the parties.”