IIFL Home Finance signs agreement for Co-lending with Punjab National Bank
4th agreement by IIFL Home Finance Ltd. With a bank
Mumbai, September 17, 2021: IIFL Home Finance Ltd. (IIFL HFL) today announced and signed an agreement with Punjab National Bank (PNB), India’s 2nd largest Public Sector Bank, for Co-lending. IIFL Home Finance Ltd. expects to grow their loan book by 25% with these associations. The loan sourcing and servicing will be managed by IIFL Home Finance and 80% of the loan will be provided by Punjab National Bank.
IIFL Home Finance Ltd. will service the customers through the entire loan cycle, from sourcing, documentation, collection to loan servicing. This association will let IIFL Home Finance to further penetrate into affordable Home Loan and Secured MSME Loan markets, and will also strengthen IIFL’s HFL’s portfolio. This arrangement will also help IIFL HFL offer attractive interest rates to its customers in 17 states, with a focus on Andhra Pradesh, Madhya Pradesh, Gujarat and Karnataka.
This is the fourth agreement signed by IIFL Home Finance Ltd. with other banks. Earlier this year, IIFL home Finance Ltd. signed agreements with banks such as ICICI Bank (second-largest private sector bank in India) for sourcing and servicing of housing loans and loan against property, Co-lending with Central Bank of India (one of India’s largest commercial banks for LIG* and MIG** sector) for home loans and Standard Chartered Bank (one of the leading foreign banks in India) for extending credit to MSME loans (loan against property). IIFL HFL has disbursed loans totaling to Rs.170 Crs till date under these arrangements.
IIFL Home Finance Ltd. facilitated Credit Linked Ssubsidy benefits, under Pradhan Mantri Awas Yojana, to over 44700 beneficiary households in 17 states, with the subsidy amount totaling to over Rs.1068 crore. The company has disbursed home loans to over 182000 customers till 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 their customers’ journey of owning a home as seamless as possible by leveraging their future-ready technology system, which offers 100% digital on boarding 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 its 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.”
The agreement was signed in the presence of Shree Swarup Kumar Saha, ED - Punjab National Bank. This association will help both the parties to align with the Government’s reform agenda of improving the flow of credit and make funds available to the ultimate beneficiary at an affordable cost.