IIFL Home Finance Ltd (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.
Dinesh Kumar Khara, SBI Chariman said,"We are glad to have joined hands with the HFCs under the co-lending program. This collaboration will enhance our distribution network, as we aim to extend our credit reach to more Home Loan borrowers of the unserved and underserved segments. Such partnerships align with our commitment to accelerate effective and affordable credit to small home buyers in India and contribute to the vision of "Housing for All by 2024".
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 onboarding 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.
Shares of IIFL Finance Limited was last trading in BSE at Rs. 283.50 as compared to the previous close of Rs. 286.50. The total number of shares traded during the day was 87605 in over 1544 trades.
The stock hit an intraday high of Rs. 289.50 and intraday low of 281.20. The net turnover during the day was Rs. 24979498.00.
Shares of State Bank of India was last trading in BSE at Rs. 487.00 as compared to the previous close of Rs. 490.65. The total number of shares traded during the day was 810390 in over 16205 trades.
The stock hit an intraday high of Rs. 494.70 and intraday low of 483.85. The net turnover during the day was Rs. 396607944.00.