According to a PNB Housing Finance regulatory filing, the two companies would combine their capabilities to offer an effective and seamless experience to current and new retail home loan customers
PNB Housing Finance announced that it has entered into a strategic co-lending agreement with Yes Bank to promote retail home loans at competitive rates. According to a PNB Housing Finance regulatory filing, the two companies would combine their capabilities to offer an effective and seamless experience to current and new retail home loan customers. It was that this strategic co-lending arrangement would provide “convenient and customized retail loans to homebuyers at reasonable interest rates.” Yes Bank and PNB Housing will collaborate on due diligence and co-originate the loan at a pre-determined ratio. According to the filing, with an effective information-sharing agreement with Yes Bank, PNB Housing will service the customers during the loan lifecycle, including procurement, documentation, and collection.
The RBI approved housing finance companies (HFCs) to co-originate with banks in 2020, allowing non-banking finance companies and other banking institutions to provide mutually beneficial risk assessment services. The updated co-lending model, which went into effect in November 2020, offers lenders more flexibility in providing higher credit to unserved and underserved populations.
Rajan Suri, Business Head Retail at PNB Housing Finance, said: “Most banks and NBFCs in India are harnessing the power of new-age technology to develop and offer qualitatively superior products and services to customers, causing a historic disruption in the financial