Indiabulls forges co-lending partnership with Central Bank of India
Indiabulls Housing Finance Limited (IBH) and Indiabulls Commercial Credit Limited (ICCL) have forged a co-lending partnership with Central Bank of India to provide secured retail loans and secured loans for micro, small, and medium enterprises (MSMEs), respectively, at competitive rates.
Indiabulls Housing Finance is an Indian mortgage lender while Indiabulls Commercial Credit is its fully-owned subsidiary.
Both Indiabulls Housing Finance and Indiabulls Commercial Credit will originate loans as per credit policy drawn up jointly with Central Bank of India. On back-to-back basis, the loans will then be securitized to Central Bank of India in line with the provisions of the co-lending model of the Reserve Bank of India (RBI).
Indiabulls Housing Finance and Indiabulls Commercial Credit enter into co-lending partnership with Central Bank of India. Photo courtesy of Raten-Kauf from Pixabay.
Indiabulls Housing Finance and Indiabulls Commercial Credit will have 20% of the loan on their books while the remaining 80% will be on the books of Central Bank of India. The Indiabulls entities will service the loan account for the entire life cycle of the loan.
Indiabulls Housing Finance stated: “Co-lending tie-up with Central Bank of India will be a key partnership in IBH’s new balance-sheet light growth business model. Moreover, technology led co-lending will help IBH offer convenient and seamless experience to its customers as well as help expand its reach to Tier III and IV towns of the country apart from strengthening its foothold in Tier I and Tier II towns.”
In April 2021, Indiabulls Housing Finance had announced a co-lending partnership with HDFC to provide housing loans to homebuyers at competitive rates.