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Home First Finance Company India Ltd (HomeFirst) has entered into a strategic co-lending partnership with Union Bank of India (UBI) to offer home loans to customers.
“The partnership aims at leveraging the strengths of both entities to provide a seamless experience to retail home loan customers in the priority sector,” HomeFirst said in an exchange filing .
Under this partnership, HomeFirst will originate loans as per the agreed credit policy of UBI in line with the provisions of RBI’s Co-Lending Model.
HomeFirst will retain minimum 20 per cent of the loan on its book while 80 per cent will be on UBI’s book.
HomeFirst to act as servicing agent for loan accounts
The housing finance company will act as a servicing agent for the loan accounts sourced under this partnership throughout the life cycle of the loan, as per the filing.
Also read: HomeFirst Finance Q2 net profit up 213%
This partnership will enable HomeFirst to expand its product offerings to customers in the geographies it operates, it added.
Manoj Viswanathan, MD & CEO said: “We can now leverage Union Bank of India’s deposit-led franchise and complement that with our strong technology-led distribution to provide efficient home loan solutions to a wider gamut of customers.’
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