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Indiabulls Housing Finance Ltd has entered into a strategic co-lending partnership with HDFC Ltd to offer housing loans to homebuyers at competitive rates.

The participation by both the entities in extending the credit facilities shall be on a sharing of risk and reward basis on mutually-agreed terms, HDFC said in a regulatory filing.

Indiabulls Housing will originate retail home loans as per jointly drawn-up credit policy and retain 20 per cent of the loan in its books and 80 per cent will be on HDFC books.

IBH will service the loan account throughout the life cycle of the loan.

"Co-lending partnership with HDFC Ltd will act as a cornerstone to 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," Indiabulls said in a filing.