IMGC and Bajaj Housing Finance Announce Strategic Partnership to Boost Affordable Housing Credit
Mumbai, April 22, 2026: In a move aimed at bridging the credit gap in India’s real estate sector, the India Mortgage Guarantee Corporation (IMGC) announced a strategic partnership with Bajaj Housing Finance Limited (BHFL) on Tuesday. The collaboration is designed to expand home loan access for first-time buyers and underserved populations, specifically targeting those who have traditionally been excluded from formal financing due to informal income profiles or limited credit histories, the company said in a press release.
The partnership integrates IMGC’s specialized credit risk protection with the extensive distribution network of Bajaj Housing Finance, the nation’s largest non-deposit-taking housing finance company. By utilizing mortgage guarantee-backed solutions, BHFL intends to scale its “Sambhav Loans” program, which is tailored for customers with unconventional financial documentation. This structure allows the lender to extend credit more broadly while adhering to the rigorous risk discipline required for responsible lending in a developing market.
The initiative arrives at a critical juncture for the Indian economy, where housing credit stood at ₹43 trillion as of February 2026. Despite this volume, mortgage penetration remains low at approximately 11-12% of GDP, far behind the 50% benchmarks seen in many developed nations. With the affordable housing segment projected to grow at a compound annual growth rate of 25% through 2027, the partnership seeks to meet rising demand in high-growth regions like Maharashtra, Karnataka, and Uttar Pradesh.
Speaking on the significance of the alliance, Mahesh Misra, MD and CEO of IMGC, emphasized the role of risk-sharing in market expansion.
“This partnership with Bajaj Housing Finance is a step forward in expanding access to housing finance for underserved segments. Mortgage guarantees play a key role in enabling lenders to extend credit with confidence, while maintaining strong risk discipline. With mortgage penetration in India still relatively low compared to global benchmarks, the opportunity to scale responsible lending remains significant, and risk-sharing solutions like mortgage guarantees are critical to unlocking it responsibly,” Misra stated.
By deepening its involvement in the affordable housing space, IMGC aims to foster a more inclusive financial ecosystem. The collaboration is expected to play a vital role in addressing the national housing credit gap, providing a roadmap for how mortgage guarantees can provide the necessary security for lenders to reach the “last mile” of the Indian home-buying public, the press release added.
