Mumbai: IIFL Home Finance, a subsidiary of IIFL Finance Limited which is an NBFC registered with the Reserve Bank of India (RBI), announced their association and signed MoU with the Central Bank of India, one of India’s leading commercial bank for LIG* and MIG** Sector lending for home loans. IIFL HF expects to grow the loan books by 18% in the coming times with this tie-up. The loan sourcing and servicing will be managed by IIFL Home Finance and 80% of the loan will be provided by Central Bank.
IIFL Home Finance will service the customers through the entire loan life-cycle including sourcing, documentation, collection, and loan servicing. This association will significantly strengthen IIFL Home Finance Ltd.’s portfolio of lending Home Loans to larger target customers in India. The arrangement will also help IIFL Home Finance to offer more attractive interest rates to its customers. With this initiative, IIFL HF expects to strengthen its presence in Telangana, Gujarat, Maharashtra, and Karnataka.
IIFL HFL recently facilitated the distribution of CLSS subsidy benefits to over 43,000 beneficiary households under Pradhan Mantri Awas Yojana. IIFL HF facilitated subsidy benefits in 17 states, totaling over Rs.1025crore. The company has to date disbursed loans to over 1,25,000 happy families.
Speaking on the development, Monu Ratra, CEO & ED at Home Finance Ltd said, “We are excited to partner with Central Bank of India, the collaboration will reinforce our strategy and objective of increasing our reach in the affordable housing segment, target untapped customers and hereby grow our book significantly under the co-lending mechanism. We understand that Pandemic has affected many and their buying capacity, through this Co-lending association, we will be able to provide more affordable home loans to first-time homebuyers at competitive prices and thereby also help in the revival of the market.”
Ratra added, “This association will further strengthen the reach of both the lenders, creating a winning proposition for all stakeholders. IIFL Home Finance with its rich origin and years of experience in Home Loan origination and servicing capabilities, including digitally advanced lending platform, while Central Bank of India will be bringing in its strength of lower-cost funds.”
IIFL Housing finance recently entered into a co-lending arrangement with Standard Chartered Bank, one of the leading foreign banks in India for extending credit to MSME loans (loan against property). IIFL HF has also joined hands with ICICI, the second-largest private sector Bank in India for affordable housing, MSME loans.
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.