Targeting middle-class, upper-middle-class customers
New Delhi, March 24: Public sector banking giant SBI has entered into co-lending agreements with five housing finance companies. The bank on Thursday said it has entered into strategic co-lending partnerships with PNB Housing Finance, IIFL Home Finance, Shriram Housing Finance, Edelweiss Housing Finance and Capri Global Housing Finance. It was clarified on this occasion that the combination was aimed at granting low interest home loans to the economically backward classes and unorganized workers. SBI believes that the realization of the dream of ownership, especially of the middle and upper middle classes, is a big problem in this country. It is in this context that it has announced its readiness to work with more housing finance companies. Housing finance companies and SBI lend in the ratio of 20:80 under these agreements. SBI provides 80 per cent of the loan amount to its customers. However, the documentation, loan disbursement and collection are taken care of by the housing finance companies.
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Bank of Baroda (BBOB) has also entered into a co-lending agreement with Digital on a non-banking financial institution. The partnership was formed to provide small business loans to women entrepreneurs as well as micro, small and medium enterprises (MSMEs).