Home Credit India (HCIN) has joined hands with Karur Vysya Bank (KVB) for offering joint lending.
In adherence to the latest Reserve Bank of India (RBI) guidelines, the banking and financial industry is exploring explore partnership avenues in the new framework with an aim to bank the large unbanked customer base.
HCIN is a local arm of the international consumer finance provider with operations spread across Europe and Asia and committed to boosting financial inclusion.
Under the partnership, Home Credit and KVB will be disbursing the loan as a single amount to the customer. End-to-end automated processing is the uniqueness of this venture by which the customer gets real-time approval and disbursement.
Anirban Majumder, CFO, Home Credit India said, “Our partnership with Karur Vysya Bank is unique in the unsecured lending space and we are confident that this partnership will prove mutually beneficial for both the organizations. Under this arrangement, Home Credit India will facilitate the sourcing and servicing of the loans originated under this scheme, while, underwriting will be done jointly on a real-time basis on a fully digitized platform. With this partnership and by leveraging the lower cost of funds of KVB, Home Credit India will be able to reach out to a new segment of customer. Going forward, Joint Lending is a successful and practical way of lending for NBFCs and I am pleased that we have pioneered the same with a strong player like Karur Vysya Bank. I look forward to this partnership successfully serving the underserved segment and broadening Financial Inclusion in India.”
P R Seshadri, Managing Director and CEO, Karur Vysya Bank said, “Karur Vysya Bank is a key player in the retail lending space. We process loans through an app-based end-to-end paperless solution that is unique in the industry. We are delighted to partner with Home Credit. We are sure that their global experience, knowledge and expertise will add great value to our business. This partnership will help us leverage HCIN’s large database, reach out to a segment which we have not pursued aggressively in the past and we will be able to provide other banking products to these customers, as well.”
