LIC Housing Finance (LICHFL) has partnered with India Mortgage Guarantee Corporation (IMGC) to offer a special home loan product with tenure up to age of 75 years, which will help home buyers increase loan quantum as the burden of monthly EMIs will get reduced.
Apart from offering home buyers enhanced loan eligibility and easy loans, this strategic tie-up will help the LICHFL to accommodate more home loan borrowers, increase market penetration besides combating NPAs.
Under the new partnership, IMGC will provide LICHFL 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.
It will also help LICHFL to improve eligibility criteria, extend repayment period and ease restrictions on profile of applicants, who face rejections related to work profile, work place, and credit history, amongst others, which may be unspecified by lending institutions and would help the company to accommodate more home loan buyers.
“LICHFL’s partnership with IMGC will help add more home loan borrowers and mitigate risk across lending categories. We will also be able to tap into the large segment of employees working in SMEs, MSMEs, small entities and self-employed individuals who have so far been out of the ambit of prospective home loan borrowers. Through this LIC HFL would support the vision of ‘Housing for All by 2022’ of the Government of India,” said Vinay Sah, MD & CEO, LICHFL.
While LIC Housing Finance Ltd is one of the largest housing finance companies in India having one of the widest networks of offices across the country and representative offices at Dubai & Kuwait, India Mortgage Guarantee Corporation (IMGC) is a joint venture between National Housing Bank, Genworth Inc, International Finance Corporation and Asian Development Bank, and is involved in providing mortgage default guarantee to the lending Institutions in India.
Commenting on its partnership with LICHFL, Mahesh Misra, CEO, IMGC, said, “We are excited about our tie-up with a leading mortgage player LICHFL to offer home loans with mortgage guarantee. IMGC and LICHFL teams have worked closely to design customised products that are aligned to LICHFL’s end user segment and calibrated expansion strategy. The housing finance industry is currently going through interesting times and large, stable lenders like LICHFL are ideally poised to leverage this opportunity. We are confident of scaling up this partnership significantly in a short time span.”
With IMGC’s back-up, LICHFL will be in a position to offer extended loan tenure for borrowers till the attainment of age of 75 years.