PNB Housing Finance today inked a a strategic co-lending agreement with Yes Bank for providing customized retail loans to homebuyers at competitive interest rates. PNB Housing and YES BANK will synergise capabilities to provide an efficient and seamless experience to existing and new retail home loan customers.
PNB Housing and YES BANK will jointly do due diligence and co‐originate the loan at an agreed ratio. PNBHousing will service the customers through the entire loan lifecycle, including sourcing, documentation and collection with an appropriate information sharing arrangement with YES BANK, said the company in an exchange filing.
Last year, the RBI allowed co-origination of HFCs with banks for enabling NBFC and other banking entities to offer mutually-beneficial risk-assessment services.
The digital transformation has opened up untapped opportunities in the retail home loan space, said Rajan Suri, Business Head Retail, PNB Housing Finance, adding that the company has seen a steady demand among the working class, especially millennials.
"I am confident that our strategic co‐lending partnership with Yes Bank will enable us to accelerate our business growth and add significant value to customer relationship and experience," Suri added.
At the time of writing this copy, PNB Housing finance traded higher by 0.51%, while Yes Bank was down 0.3%.