On Friday, PNB Housing Finance and Yes Bank confirmed entering into a strategic co-lending agreement.
The aim is to offer customised retail loans for homebuyers at competitive interest rates.
Moreover, both organisations will jointly do due diligence and co-originate the loan at an agreed ratio. Further, PNB Housing will render services to customers via the entire loan lifecycle.
It comprises sourcing, documentation and collection with an information sharing arrangement with Yes Bank.
The RBI approved the co-origination of housing finance companies with banks in 2020.
This was to facilitate non-banking finance companies and other banking institutions to provide mutually beneficial risk assessment services.
However, the revised co-lending model launched in November 2020 proffers lenders with greater flexibility.
This is through offering higher credit for the unserved and underserved segments of population.
Currently, India’s financial sector is observing a historical derangement with most banks and NBFCs utilizing the power of new-age technologies.
The end goal is to innovate and deliver qualitatively superior products and services to customers.
Meanwhile, the digital transformation has provided a plethora of opportunities in the retail home loan segment.
This partnership will help in hiring local expertise and assist the bank to foster its footprint in newer geographies.
Yes Bank’s retail banking Global Head stated the intention to curate and innovate products that add value to customers.
He further emphasized on the need to source meaningful partnerships that enable banks to serve that goal.
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