Shriram Housing Finance and Punjab and Sind Bank Sign Co-lending Agreement to Lend to the Affordable Housing Segment
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Shriram Housing Finance Limited (SHFL), a leading affordable housing finance company, today announced the signing of a co-lending agreement with public sector lender Punjab and Sind Bank (PSB) for business loans against affordable homes. The two entities will jointly service the self-employed customers as per the co-lending model (CLM) of the Reserve Bank of India (RBI).
Shriram Housing Finance, is amongst the
largest affordable housing financier in the country and one of the
fastest-growing companies in this segment. Under the co-lending arrangement,
SHFL will target self-employed customers for business loans against their
property in the affordable housing segment with PSB. SHFL will originate,
process and service the loans. SHFL has provided affordable home loans to over 1.5
lakh customers, with a focus on households that belong to the middle-income segment
and with informal sources of income and employment.
Commenting
on the partnership, Ravi Subramanian, MD & CEO of Shriram Housing
Finance, said, “We are very 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 we plan to capitalise on this
growth.”
“Through the co-lending model, we aim to explore the vast, emerging informal and middle-income population by leveraging the balance sheet strength of PSB and our expertise in underwriting affordable home loans,” Mr Subramanian added.
Mr. Swarup Kumar Saha, MD & CEO, Punjab & Sind Bank said, “Punjab and Sind Bank and Shriram Housing Finance Limited have entered into a strategic partnership under the Co-Lending agreement to expand the credit outreach to unserved customers. This Co-lending partnership also aims at expanding the financial inclusion initiatives of the Bank”
