SBI signs pact with Housing Finance Companies for Co-Lendingof Home Loans
-The MoU is to finance Home Loans for the unserved and under served sectors under the Co-Lending Model
Mumbai, March 24, 2022: India’s largest lender, State Bank of India (SBI), has entered into a co-Lending agreement with 5 Housing Finance Companies (HFCs) that include PNB Housing Finance Limited, IIFL Home Finance Limited, Shriram Housing Finance Limited, Edelweiss Housing Finance Limited, and Capri Global Housing Finance Limited, to sanction Home Loans to the unserved and underserved sector in line with RBI guidelines.
Shortage in affordable housing continues to be a major concern for India, especially for the Economically Weaker Section (EWS) and the Informal Sections of the society. To further improve the penetration in this segment, SBI is actively looking at co-lending opportunities with multiple HFCs.
Speaking on this partnership, Shri Dinesh Khara, Chairman, SBI, 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”.
RBI had issued guidelines on the co-lending scheme for banks and HFCs/NBFCs for Priority Sector Lending to improve the flow of credit to the unserved and underserved sectors of the economy and make funds available to borrowers at an affordable cost. The co-lending model aims to give the borrower the best interest rate and better reach.
The partnership signed in Mumbai was handed over by Shri Dinesh Khara, Chairman, SBI, to the respective Heads of the HFCs as mentioned above. Shri Challa Sreenivasulu Setty, Managing Director, SBI, SmtSaloni Narayan, Deputy Managing Director (RB), SBI, and Shri Mahesh Goel, CGM (RE), SBI were present on the occasion.