SBI inks co-lending pact with IIFL HFL for affordable housing loans

25 Mar 2022 CW Team

IIFL Home Finance (IIFL HFL), a home finance company, has signed a co-lending agreement with State Bank of India (SBI), a public sector bank, for affordable housing loans.

It is SBI's first co-lending deal with a home finance firm. The loan sourcing and servicing will be handled by IIFL HFL. Under the arrangement, 80% of the loan will be rendered by SBI. IIFL HFL will service the customers throughout their entire loan cycle, from sourcing, documentation, disbursal to a collection.

As per the firm, this partnership will let it penetrate further into the affordable home loan segment.

IIFL HFL has disbursed loans totalling Rs 1,500 crore till February 28, 2022, under existing co-lending arrangements.

Earlier this year, IIFL HFL inked deals with banks like Union Bank for extending home loans, Central Bank of India and Punjab National Bank for extending home loans and Ministry of Micro, Small & Medium Enterprises (MSME) loans.

Dinesh Kumar Khara, Chairman of SBI, told the media that this partnership would improve their distribution network, as they aim to extend their credit reach to more home loan borrowers of the unserved and underserved segments.

IIFL HFL has been able to disburse subsidies under the Credit Linked Subsidy Scheme (CLSS) of more than Rs 1,270 crore to households since the rolling out of the scheme in June 2015. The firm recently signed a $68 million loan with Asian Development Bank (ADB) to improve financial access to affordable green housing for lower-income women borrowers in India.

The funding comprises a direct ADB loan of up to $58 million and a $10 million concessional loan by the Canadian Climate Fund for the Private Sector in Asia (CFPS). From ADB’s loan, 80% will be allocated for lending to women borrowers and 20% assigned to funding mortgages for green-certified houses.

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Also read: IIFL HFL inks $68 mn loan with ADB to fund affordable green housing

IIFL Home Finance (IIFL HFL), a home finance company, has signed a co-lending agreement with State Bank of India (SBI), a public sector bank, for affordable housing loans. It is SBI's first co-lending deal with a home finance firm. The loan sourcing and servicing will be handled by IIFL HFL. Under the arrangement, 80% of the loan will be rendered by SBI. IIFL HFL will service the customers throughout their entire loan cycle, from sourcing, documentation, disbursal to a collection. As per the firm, this partnership will let it penetrate further into the affordable home loan segment. IIFL HFL has disbursed loans totalling Rs 1,500 crore till February 28, 2022, under existing co-lending arrangements. Earlier this year, IIFL HFL inked deals with banks like Union Bank for extending home loans, Central Bank of India and Punjab National Bank for extending home loans and Ministry of Micro, Small & Medium Enterprises (MSME) loans. Dinesh Kumar Khara, Chairman of SBI, told the media that this partnership would improve their distribution network, as they aim to extend their credit reach to more home loan borrowers of the unserved and underserved segments. IIFL HFL has been able to disburse subsidies under the Credit Linked Subsidy Scheme (CLSS) of more than Rs 1,270 crore to households since the rolling out of the scheme in June 2015. The firm recently signed a $68 million loan with Asian Development Bank (ADB) to improve financial access to affordable green housing for lower-income women borrowers in India. The funding comprises a direct ADB loan of up to $58 million and a $10 million concessional loan by the Canadian Climate Fund for the Private Sector in Asia (CFPS). From ADB’s loan, 80% will be allocated for lending to women borrowers and 20% assigned to funding mortgages for green-certified houses. Image Source Also read: IIFL HFL inks $68 mn loan with ADB to fund affordable green housing