Shriram Housing Finance partners State Bank of India for Co-lending to Affordable Housing
Shriram Housing Finance Ltd., a leading affordable housing finance company today announced the signing of a co-lending agreement with the Indian state bank (SBI), the largest bank in India, for the priority sector of affordable houses. The two entities will jointly serve the housing loan customers in accordance with the co-lending model 20:80 (CLM) from the Bank of India (RBI) reserves. Part of the Shriram group, Shriram Housing Finance is among the largest housing financiers in India Andone from the fastest growing company in the segment. The company will target priority sector housing loans in affordable housing segments under this co-lending setting with SBI. Shriram Housing Finance will originate, process and serve loans.
Commenting on the partnership of Ravi Subramanian, MD & CEO of Shriram Housing Finance said “Demand for very large housing in an affordable segment and we barely scratched the surface. We are very happy to partner with SBI and together we will be able to serve a much bigger customer base, Especially the borrower at the bottom of the pyramid. Through co-lending model, we intend to use the power of SBI balance sheets and our emissions guarantee capabilities. “He added “Shriram Housing Finance specializes in affordable housing finance, especially in the self-employment segment that we call ‘middle class emerging’. Priority sector loans account for around 40% of our loan portfolios. There is a major market where we have a consumer understanding Highly in and high underwriting skills. Partnerships with SBI will add to our strength and provide adequate support when we work towards our destination to serve ‘aamadmi’ and financial inclusion. “
From the beginning, the SHFL has provided an affordable home loan to more than 1 lakh customers, including households included in the lower end of the income spectrum, especially with informal sources of work and income. The company also plans to take advantage of the broad network and infrastructure of the Shriram group to foster its presence in the middle class segment that appears, and reaches the last mile customer DINESH KUMAR KHARA, said SBI Chair, “We are happy to have joined hands with Shriram Housing Finance under a joint loan program. This collaboration will increase our distribution network, because we aim to extend our credit range for more borrowing home loans from the segment not Served and underlayed. Such partnerships harmonize with our commitment to accelerate credit effective and affordable to buyers of small houses in India and contribute to the vision of “housing for 2024”.
