SBI signs first Co-lending agreement with IIFL Home Finance Ltd. for priority sector home loans

∙IIFL HFL has so far co-lended more than Rs 1500 cr worth of loan book till date under existing arrangements

∙Home loan sourcing and servicing will be managed by IIFL HFL

∙80% of the loan will be provided by SBI under the arrangement

∙IIFL HFL under Economically Weaker Sections (EWS), Low Income Group (LIG) and Middle Income Group has disbursed loan to over 1,41,000 borrowers as on December 31st, 2021

Delhi, 24th March, 2022: IIFL HFL, India’s fastest growing digital first home finance company, today announced signing of agreement with State Bank of India, a leading public sector bank, 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.

IIFL HFL 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 28th, 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.

Speaking on the new arrangement, Mr. 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”.

IIFL HFL in the recent past announced milestone of facilitating over 53,000 households under Credit Linked Subsidy Scheme (CLSS) making it one of the leading FIs contributing towards Pradhan Mantri Awas Yojana-Urban (PMAY-U). The company has been able to disburse subsidy of over Rs 1270 cr to households since the launch of the scheme in June 2015.

As a fintech housing finance company, IIFL HFL is dedicated to making its customers’ journey of owning a home as seamless as possible, by leveraging its future-ready technology, which offers 100% digital on boarding of its home loan customers.

IIFL HFL recently signed a USD 68 million loan with 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 earmarked for lending to women borrowers and 20% allocated to financing mortgages for green-certified homes. The ADB loan will support IIFL’s green housing portfolio, especially towards incentivising developers to adopt green certification standards in building affordable housing.

About IIFL Home Finance Limited

IIFL Home Finance Limited (IIFL HFL) is a wholly-owned subsidiary of IIFL Finance Limited. It is one of India’s leading housing finance companies and is a preferred choice for affordable home loan requirements. As of 31st December 2021, the AUM stood at Rs 22,207 crore of which home loan is 74% of the total with an average ticket size of Rs 17 lakh. The Return on Assets (ROA) for the period is at 3.5%.

Through affordable home loans, IIFL HFL makes people's aspirations of owning a home a reality, while emphasising on supporting green buildings and projects that help society achieve inclusive sustainable development. The objective is to fulfill economic upliftment for EWS/LIG segments of the country. The company has adopted asset light model by getting into Co-Lending arrangements that further helps to penetrate and expand in deeper markets of India. To make customer experience seamless the entire life cycle of housing loans is technology driven i.e., from origination to closure.

The state-of-the-art IT infrastructure helps in reducing costs, real-time analysis of customer data, improving control and underwriting functions, while increasing customer reach and distribution capability.

To know more, https://www.iiflhomeloans.com/co-lending-mechanism

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