PNB Housing Finance and Yes Bank said on Friday they have entered into a strategic co-lending agreement to offer customised retail loans for homebuyers at competitive interest rates.
Both orgsations will jointly do due diligence and co-originate the loan at an agreed ratio. PNB Housing will service customers through the entire loan lifecycle including sourcing, documentation and collection with an information sharing arrangement with Yes Bank.
In 2020, the Reserve Bank of India allowed the co-origination of housing finance compes with banks to enable non-banking finance compes (NBFCs) and other banking institutions to provide mutually-beneficial risk assessment services.
The revised co-lending model introduced in November last year gives lenders greater flexibility vis-a-vis offering higher credit for the unserved and underserved segments of population.
Rajan Suri, Business Head for retail at PNB Housing Finance, said India's financial sector is witnessing a historical disruption with most banks and NBFCs harnessing the power of new-age technologies to innovate and deliver qualitatively superior products and services to customers.
"The digital transformation has opened up untapped opportunities in the retail home loan space. We have seen a steady demand among working class, especially millennials who are keen to realise their dream of owning a home early in their careers," he said.
Rajan Pental, Global Head for retail banking at Yes Bank, said the partnership will go a long way to bring local expertise and assist the bank to boost its footprint in newer geographies.
"It is our constant endeavour to curate and innovate products that add value for customers, and source mengful partnerships that enable us to serve that goal," he said.
( With inputs from ANI )
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