PNB Housing Finance and Yes Bank have entered into a strategic co-lending agreement. This agreement will facilitate the home loan company and the bank to distribute retail home loans at cheaper rates. PNB Housing Finance has mentioned this in the information given to the stock exchanges. He has said that through this agreement, old and new home loan customers will be provided a great experience. For this, the home loan company and the bank will use each other’s capabilities.

Will investigate the application jointly, will give loan in a fixed proportion by mutual negotiation.

PNB Housing Finance said that customers will be provided with retail home loans at affordable rates according to their needs. The loan application will be investigated by the housing finance company and the bank and will give loan in a fixed proportion by mutual negotiation.

Home loan service will be done from beginning to end by PNB Housing Finance

As per the agreement, PNB Housing will provide all the facilities to the customer from the start of the home loan till its completion. These facilities will range from loan sourcing to documentation and collection. The bank will continue to provide the necessary information related to the PNB Housing Finance Loan.

RBI granted home loan companies in 2020 permission to share loans with banks

In 2020, banking regulator RBI allowed housing finance companies to share loans with banks. This step was taken to help non-banking finance companies (NBFCs) and other banking institutions provide risk assessment facilities that benefit each other. The revised model of co-lending introduced in November 2020 allows lenders more flexibility in disbursing more loans to customers who do not have access to banking systems or have little access.

Banks and NBFCs trying to find new ways to provide better products and services

Rajan Suri, Retail Business Head, PNB Housing Finance, says: “There is a historic shift taking place in the domestic financial sector. Most banks and NBFC are making full use of the new age technology. They are trying to find new ways to provide better products and services to customers through them. Digital Transformation has opened a bevy of possibilities in the retail home loan business.

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