IIFL Home Fin has entered into a strategic co-lending partnership with State Bank of India to accelerate efficient and affordable credit to small home buyers in the country. IIFL HFL, a digital-focused real estate finance company, has signed an agreement with SBI to co-lend Priority Sector real estate loans.
“This is SBI’s first co-loan agreement with a real estate finance company. Loan sourcing and servicing will be managed by IIFL HFL. Under the arrangement, 80% of the loan will be provided by SBI,” he said in a statement Thursday. . IIFL HFL will serve clients throughout their loan cycle, from sourcing, documentation, disbursement to collection.
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This will help the company further penetrate the affordable home loan segment. This arrangement will also help the company to offer attractive interest rates to its customers. “This collaboration will enhance our distribution network as we aim to expand our credit reach to more home loan borrowers in the unserved and underserved segments. Such partnerships align with our commitment to accelerating credit efficiently and affordability to small-scale homebuyers in India and contribute to the vision of housing for all by 2024,” said SBI Chairman Dinesh Kumar Khara.
“We look forward to further strengthening our presence in the affordable home space with co-lending. With this association, we aim to align our goals with the government’s program to improve the flow of credit and put funds available to the end beneficiary at an affordable price,” said Monu Ratra, CEO and Managing Director, IIFL HFL. The company has disbursed loans totaling Rs 1,500 crore till February 28, 2022 under the co-loan agreements existing.
First post: STI
