A co-lending agreement was signed by the Shriram Housing Finance Limited (SHFL) and the Punjab & Sind Bank to provide loans to the affordable housing market
In order to provide business loans secured by affordable homes, public sector lender Punjab and Sind Bank (PSB) and Shriram Housing Finance Limited (SHFL) have entered into a co-lending arrangement. In accordance with the Reserve Bank of India's Co-lending Model (CLM), the two organisations will work together to support self-employed clients (RBI).
In accordance with the co-lending agreement, SHFL will specifically target self-employed clients for business loans secured by their real estate in PSB's affordable housing segment. The loans will be originated, processed, and serviced by SHFL. Over 1.5 lakh consumers have benefited from the company's low-cost housing loans, which are primarily middle-class households with unofficial sources of income and work.
According to Mr. Ravi Subramanian, Managing Director and Chief Executive Officer (CEO), Shriram Housing Finance Limited (SHFL), the company is excited to partner with Punjab and Sind Bank and will jointly penetrate deeper into the affordable housing finance market. There is a wide credit gap that the self-employed segment faces, and SHFL, with the support of our co-lending partners, will explore bridging some of this gap. The need for affordable housing is being driven by the burgeoning working population, which is growing at a fast clip, and it intends to capitalise on this growth.
He further stated that through this co-lending model, the aim is to explore emerging informal and middle-income populations by leveraging the balance sheet strength of PSB and its expertise in underwriting affordable home loans.
Mr. Swarup Kumar Saha, Managing Director & Chief Executive Officer (CEO), Punjab & Sind Bank stated that the collaboration has helped to enter a strategic partnership under the co-lending agreement to expand the credit outreach to unserved customers. The aim of this partnership is to expand the financial inclusion initiatives of the bank.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.