IIFL Home Finance Ltd, today announced and signed an agreement with Punjab National Bank (PNB) for co-lending. IIFL Home Finance Ltd. expects to grow their loan book by 25 percent with these associations.
How it works
The loan sourcing and servicing will be managed by IIFL Home Finance and 80 percent 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, it said in a press release.
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 for sourcing and servicing of housing loans and loan against property, Co-lending with Central Bank of India for home loans and Standard Chartered Bank for extending credit to MSME loans (loan against property). IIFL HFL has disbursed loans totaling to Rs.170 crores till date under these arrangements.
Monu Ratra, CEO & ED at Home Finance Ltd said, “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.