Affordable home loans: SBI partners with PNB Housing, IIFL Home Fin, others

New Delhi: State Bank of India (SBI) has partnered with five housing finance companies (HFCs) – PNB Housing Finance Ltd, IIFL Home Finance Ltd, Shriram Housing Finance Ltd, Edelweiss Housing Finance Ltd, and Capri Global Housing Finance Ltd – to provide affordable home loans to small home buyers in the country. 

"This is SBI's first co-lending agreement with a home finance company. The loan sourcing and servicing will be managed by IIFL HFL. Under the arrangement, 80 per cent of the loan will be provided by SBI," IIFL HFL said in a release on Thursday.

Dinesh Kumar Khara, SBI Chairman, said that the collaboration will enhance the distribution network. “We aim to extend our credit reach to more home loan borrowers in 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," Khara added.

Prior to SBI, IIFL HFL had entered into agreements with Union Bank for extending affordable home loans. The lender has also partnered with the Central Bank of India for LIG and MIG sector loans and Punjab National Bank for extending home loans and MSME loans, according to a PTI report. Also Read: Attention Noida, Greater Noida homebuyers! Anarock to facilitate sale of 5,400 flats of Amrapali in NCR

"We are looking forward to further strengthening our foothold in the affordable home space with co-lending. With this association, we target to align our goals with the government's agenda of improving the flow of credit and make funds available to the ultimate beneficiary at an affordable cost," Monu Ratra, CEO & ED, IIFL HFL said. Also Read: App with Russian link is stealing your Facebook data; uninstall it immediately to stay safe