LIC Housing Finance Ltd (LICHFL) on Monday said it has partnered India Mortgage Guarantee Corporation (IMGC) to offer home buyers enhanced loan eligibility and easy loans.
With IMGC’s back-up, LICHFL will be in a position to offer extended loan tenure for borrowers till the age of 75 years. This will help increase the loan quantum and reduce the burden of monthly EMIs for borrowers.
This strategic tie-up will help LICHFL accommodate more home loan borrowers, increase market penetration, besides combat non-performing assets (NPAs), LICHFLsaid in a statement.
Under the new partnership IMGC will provide LICHFL mortgage guarantee, which is a financial product that compensates financial institutions for losses that may arise from a default on a mortgage loan.
“It will also help LICHFL accommodate more home loan buyers, improve eligibility criteria, extend the repayment period and ease restrictions on the profile of applicants who face rejection related to work profile, work place and credit history, amongst other reasons, which may be unspecified by lending institutions,” the statement said.
Vinay Sah, MD & CEO, LICHFL said: “LICHFL’s partnership with IMGC will help add more home loan borrowers and mitigate risk across lending categories. We will also be able to tap into the large segment of employees working in SMEs, MSMEs, small entities and self-employed individuals, who have so far been out of the ambit of prospective home loan borrowers.”
Mahesh Misra, CEO, IMGC said: “… IMGC and LICHFL teams have worked closely to design customised products that are aligned to LICHFL’s end-user segment and calibrated expansion strategy….We are confident of scaling up this partnership significantly in a short time span.”