India Post Payments Bank (IPPB) has collaborated with LIC Housing Finance Limited (LICHFL) to offer home loan products to its customers.
This move forms part of IPPB’s plan to expand its offering and serve the unbanked and underserved in the country.
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The two parties have signed a memorandum of understanding in this regard, with IPPB in charge of sourcing.
LICHFL has been tasked with credit underwriting, processing, as well as disbursement for the home loans.
The bank has 650 branches and more than 136,000 banking access points. It will use this network to provide LICHFL’s home loan products to its clients across India.
At present, the bank distributes general and life insurance products by teaming up with insurance firms.
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By GlobalDataLICHFL MD and CEO Y. ViswanathaGowd said: “The strategic MoU with IPPB will help us to further deepen our market penetration and enable us to increase LICHFL’s home loan product outreach in untapped geographies across the country. With an unmatchable presence of Post Offices, we see this strategic partnership as a significant step that will help our long-term business growth and improve our market share.
“This is in line with the Company’s objective to increase business contribution from Tier 2 markets and beyond.”
LICHFL’s home loan starts from 6.66% for loans up to $68,082 (INR5m) for salaried individuals, with interest rate linked to the creditworthiness of the borrower.
The firm’s GrihaVarishtha home loan proposition caters to retired or serving employees.
It includes employees of PSU insurers, central/state government, railways, defence, banks among others entitled to pension under Defined Benefit Pension Scheme.
IPPB MD and CEO J. Venkatramu said: “The partnership with LICHFL is a significant tie-up in IPPB’s journey to become one of the largest platforms for availing credit products by our customers for meeting various needs, in line with our focus on providing comprehensive customer-centric, convenient and digital solutions to our customers.”
