SBI signs Co-lending deal with IIFL Home Finance for priority sector home loans

Mumbai, March 24, 2022: IIFL HFL, today announced signing of agreement with State Bank of India, for Co-lending of priority sector home loans. 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% of the loan will be provided by SBI.

A press release issued by IIFL HFL says that it will service the customers throughout their entire loan cycle, from sourcing, documentation, disbursal to collection. This association will let IIFL HFL penetrate further into affordable Home Loan segment. This arrangement will also help IIFL HFL in offering attractive interest rates to its customers.

IIFL HFL has disbursed loans totaling Rs 1500 cr till February 28, 2022 under existing co-lending arrangements. Earlier this year, IIFL HFL signed agreements with banks such as Union Bank for extending home loans, Central Bank of India (one of India’s largest commercial banks for LIG and MIG sector) and Punjab National Bank for extending home loans and MSME loans, and with Standard Chartered Bank (one of the leading foreign banks in India) for extending credit to MSME loans.

Dinesh Kumar Khara, SBI Chairman 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 home buyers in India and contribute to the vision of “Housing for All by 2024”.

Speaking on the new arrangement,  Monu Ratra, CEO & ED at IIFL HFL said, “It’s our pleasure to be associated with State Bank of India, as 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”.