"We are in talks with the subsidiary of Deutsche Postbank to start disbursing home loans for them," a senior DoP official said.
It would initially be available through selected post offices, he said. Deutsche Postbank is an offshoot of Germany's Deutsche Post.
The Post office already have alliance with the SBI to enable people to open an account through the postal department. Moreover, education, home and personal loans can also be applied for and sanctioned from State Bank of India through the postal department.
With a huge network of more than 155,000 post offices, the DoP is also looking at tie-ups with other banks to disburse housing loans in the rural areas.
The post office, in its bid to leverage its reach had started retailing various financial products.
It has a tie-up with UTI MF, Principal PNB AMC, Prudential ICICI and SBI Mutual Fund for selling their mutual funds.
Recently, the post office has also inked a joint venture with the Centurian Bank of Punjab for business in foreign exchange.
Under the six month agreement with the Centurian Bank of Punjab for forex business, a pilot project would be launched in 31 Head Post Offices of 11 states.
Besides, the government is also using the post offices to disburse the proceedings of the National Rural Employment Guarantee (NREG) Scheme.