Indiabulls partners with HDFC to offer home loans
Indiabulls Housing Finance Limited is a mortgage lender headquarters in Gurugram, Haryana, India. It is India’s second-largest housing finance company and is regulating by the National Housing Bank.
While Indiabulls shareholders will receive a 90.5% stake in the consolidated entity, to be called Indiabulls Lakshmi Vilas Bank, and LVB will receive the remaining 9.5%.
However, Indiabulls Housing Finance (IBH) partnered with the country’s largest mortgage lender. While Housing Development Finance Corporation (HDFC Ltd) offering home loans to borrowers at competitive rates. Which is known as co-lending in market parlance, the company said in a stock exchanging notification.
On the other side, “Co-lending partnership with HDFC Ltd will act as a cornerstone to IBH’s new balance-sheet light growth business model,” IBH said in a release. Both the home financiers will frame a common credit policy with IBH originating retail housing loans.
While HDFC will retain 80 percent of any such credit on its book, the rest 20 percent will go to IBH’s loan book. Indiabulls will service the loan account throughout the life cycle of the loan. Meanwhile, an occasion where two large housing finance companies are inking co-lending pacts is rarely seeing, dealers said.
Moreover, local rating company CRISIL Ratings graded IBH with double-A. While the last month, CRISIL Ratings revised its rating outlook on the long-term debt instruments and bank facilities to ‘Stable’from ‘Negative’ while reaffirming the rating at ‘CRISIL AA‘. On the other hand, HDFC continues to command the highest creditworthiness with a triple-A rank.
Moreover, technology-led co-lending will enable IBH to offer a convenient and seamless experience to its customers. While it also helps expand its reach to smaller towns and cities of the country. Companies have not to mention home loan rates are offering under the co-lending window.