Edelweiss Housing Finance Limited (EHFL), a subsidiary of Edelweiss Financial Services Limited, today announced a strategic agreement with State Bank of India (SBI), for co-lending of priority sector home loans to self-employed entrepreneurs and salaried customers.
This alliance will leverage the combined reach of both the partners in tier II and tier III markets to ensure timely disbursal of housing credit to customers, it said in a press statement.
This partnership between EHFL and SBI involves sharing of risks and rewards and aims to create a conducive lending environment for Indians to fulfil their ambition of home ownership. The alliance is a win-win for both the partners and the customers alike.
For EHFL, co-lending represents an alternate model of disbursals that is asset-light and creates a sound revenue model for sustainable business, whereas, for SBI which brings capital flows at lower costs, the partnership provides wider customer reach through EHFL. Most importantly, for customers, co-lending provides simplicity of dealing with a single entity for their financing needs up to Rs. 35 lakhs, in addition to benefiting from blended cost-effective interest rates, the statement added.
Dinesh Khara, Chairman of State Bank of India, said, “We are glad to have joined hands with the HFCs under the co-lending program. This collaboration will enhance our distribution network, as we aim to extend our credit reach to more Home Loan borrowers of the unserved and underserved segments. Such partnerships align with our commitment to accelerate effective and affordable credit to small home buyers in India and contribute to the vision of “Housing for All by 2024”.
Speaking on the development, Rajat Avasthi, MD&CEO, EHFL, said, “We are excited to partner and work with the largest public sector bank in India. Owning a home is an important milestone and dream for every Indian. And this partnership will help us fulfil that deep-rooted aspiration for Indians. I believe easy availability of home loans will also lead to higher demand in the real estate sector, which is a key driver for economic growth as well.’’
The co-lending model is an evolutionary agreement that combines the expertise of public sector banks with the strong origination expertise and reach of HFCs.
