SBI signs co-lending pact with 5 HFCs for advancing home loans

State Bank of India (SBI) said it had entered into a co-loan agreement with 5 housing finance companies (HFCs) to provide mortgages. The agreement with PNB Housing Finance Ltd., IIFL Home Finance Ltd., Shriram Housing Finance Ltd., Edelweiss Housing Finance Ltd. and Capri Global Housing Finance Ltd. would help penalize home loans to the unserved and underserved sector in line with RBI guidelines, the lender said.

Shortage of affordable housing remains a major concern for India, especially for the economically weaker sections (EWS) and the informal sections of society. To further improve penetration in this segment, SBI is actively looking into multi-HFC co-loan opportunities,” the bank said in a statement.

“This partnership will enhance our distribution network as we aim to expand our credit reach to more borrowers from the unserved and underserved segments,” said Chairman Dinesh Khara.

“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,” he said.

RBI had issued guidelines on the notification schedule for banks and HFCs/NBFCs for priority sector loans to improve the flow of credit to the unserved and underserved sectors of the economy and make funds available to borrowers at an affordable price.

The goal of the co-lending model is to give the borrower the best interest rate and greater range according to the lender.

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