On Monday LIC Housing Finance said that it has partnered with India Mortgage Guarantee Corporation (IMGC) to offer special loan scheme that allows borrowers to repay the loan amount till the age of 75 years.

In a press release, LICHFL said that, through the partnership, IMGC will provide it with mortgage guarantee which is a kind of financial product that compensates financial institutions for losses that may arise from a default on a mortgage loan.

Besides protecting it from potential NPAs (non-performing assets), the tie-up will help it accommodate more borrowers and improve its market penetration.

"It will also help LICHFL accommodate more home loan buyers, improve eligibility criteria, extend repayment period and ease restrictions on profile of applicants, who face rejection related to work profile, workplace, credit history amongst other reasons which may be unspecified by lending institutions," it said.

The back up from IMGC will help LIC Housing Finance offer loans at extended tenures as long as the age of 75 years and the will, in turn, increase the quantum of the loan and reduce the burden of EMIs (equated monthly installments) on borrowers.