PNB Housing Finance on Friday announced that it has entered into a strategic co-lending agreement with Yes Bank to offer customized retail loans to homebuyers at competitive interest rates.
In an exchange filing, PNB Housing Finance said that both the companies will jointly do due diligence and co‐originate the loan at an agreed ratio.
“PNB Housing will service the customers through the entire loan lifecycle, including sourcing, documentation and collection with an appropriate information sharing arrangement with Yes Bank,” the company said.
In 2020, the Reserve Bank of India (RBI) had allowed the co‐origination of Housing Finance Companies (HFC) with banks to enable non‐banking finance companies and other banking institutions to provide mutually‐beneficial risk assessment services.
The revised co‐lending model, introduced in November 2020, gives lenders greater flexibility vis‐a‐vis offering higher credit for the unserved and underserved segments of the population.
The digital transformation has opened up untapped opportunities in the retail home loan space, said Rajan Suri, Business Head Retail, PNB Housing Finance, adding that the company has seen a steady demand among the working class, especially millennials.
“I am confident that our strategic co‐lending partnership with Yes Bank will enable us to accelerate our business growth and add significant value to customer relationship and experience,” Suri added.
At 11:25 am, the shares of PNB Housing Finance were trading 0.49 percent higher at Rs 434.80 apiece, while Yes Bank was trading 0.30 percent higher at Rs 16.65 apiece on the BSE.