PNB Housing Finance & YES Bank enter into strategic co-lending partnership
NEW DELHI: PNB Housing Finance and YES Bank have entered into a strategic co-lending agreement to offer retail loans to homebuyers.
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.
Rajan Suri business head retail, PNB Housing Finance said, “The digital transformation has opened up untapped opportunities in the retail home loan space.”
Rajan Pental, global head – retail banking, YES Bank, said, “The partnership provides ease of loan sanctions at borrower’s convenience through digital lending platforms – thereby enabling homebuyers to fulfil their dreams and aspirations.”
In 2020, RBI allowed the co-origination of HFCs 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.
Read more at: