IIFL Home Finance Ltd. (IIFL HFL) today inked an agreement with Punjab National Bank (PNB), India’s 2nd largest Public Sector Bank, for Co-lending. According to the official communique, IIFL Home Finance Ltd. expects to grow their loan book by 25% with these associations. As a part of the partnership, the loan sourcing and servicing will be managed by IIFL Home Finance and 80% of the loan will be provided by Punjab National Bank.
IIFL Home Finance Ltd. will service the customers through the entire loan cycle, from sourcing, documentation, collection to loan servicing. This association will let IIFL Home Finance to further penetrate into affordable Home Loan and Secured MSME Loan markets, and will also strengthen IIFL’s HFL’s portfolio. This arrangement will also help IIFL HFL offer attractive interest rates to its customers in 17 states, with a focus on Andhra Pradesh, Madhya Pradesh, Gujarat and Karnataka.
Monu Ratra, CEO & ED at Home Finance Ltd said, “We are extremely excited and honoured about this tie up especially when its PNB’s first co-lending arrangement. This will enable us to further extend our affordable home loans to many more customers and we firmly believe in this model of synergies which shall be fit for both the parties.”
The agreement was signed in the presence of Swarup Kumar Saha, Executive Director, Punjab National Bank.