India Mortgage Guarantee Corporation (IMGC) on Thursday announced its partnership with Muthoot Homefin (India) Limited (MHIL) to offer mortgage guarantee-backed home loan products to MHIL’s home loan customers in the affordable housing segment.
“With increased demand for affordable and mid-income housing, Muthoot Homefin aims to leverage mortgage guarantee as a risk mitigation tool. The tie-up with IMGC will help Muthoot Homefin deepen its penetration in existing markets across its 108 branches/ locations, thereby enabling home ownership in the affordable housing segment,” the two companies said in a joint statement.
Mahesh Misra, CEO, IMGC said, “The products have been developed using a calibrated approach and we are confident of a steady scale up.”
Rajeev Khond, CEO, MHIL, said, “Mortgage guarantee will enable MHIL to allow higher loan amount (LTV ratio) to the customers at lower rates of interest.”
The mortgage guarantee-backed home loan programme between IMGC and MHIL has been designed to address the needs of wide range of customers through varied products -- cash salaried programme; enhanced loan tenor; for government pensioners; HNIs; and borrowers who have verifiable income but minimal documentary evidence for the same.
IMGC said it has tie-ups with more than 19 lenders comprising banks, housing finance companies and NBFCs. The company said it has guaranteed home loans worth ₹12,520 crore to more than 70,000 home loan borrowers.