PNB Housing Finance strikes co-lending partnership with State Bank of India

PNB Housing Finance has entered into a co-lending agreement with the State Bank of India (SBI) to offer homebuyers with personalized retail loans at competitive interest rates.

The partnership will mainly cover priority sector housing loans.

Hardayal Prasad — PNB Housing Finance Managing Director and CEO said: “Our strategic partnership with SBI is an important extension of our retail home loan segment and will enable us to serve India’s working classes and underserved communities better.

“This co-lending agreement will advance our mission to provide affordable housing to a large section of the population and help them realise their goal of owning their dream home. Co-lending is the future of priority sector lending, as it reduces the cost of financing for last-mile borrowers.”

PNB Housing Finance strikes co-lending partnership with the State Bank of India. Photo courtesy of Digamber/Wikipedia.org.

PNB Housing and State Bank of India by combining their capabilities expect to give an efficient and smooth experience to existing as well as new retail home-loan customers. The duo will jointly carry out due diligence and co-originate loans at an agreed ratio of 20:80.

Customers will be serviced by PNB Housing throughout the loan lifecycle. This includes sourcing, documentation and collection under an agreed information sharing arrangement with the State Bank of India.

PNB Housing Finance said that the agreement will allow it to offer lending solutions to customers at competitive rates of interest with considerable benefits.

Dinesh Kumar Khara — Chairman of State Bank of India 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 homebuyers in India and contribute to the vision of “Housing for All by 2024.”