PNB Housing Finance, Yes Bank enters into co-lending partnership for retail lending


PNB Housing Finance and Yes Bank announced Friday that they have entered into a strategic co-lending agreement to offer bespoke personal loans for home buyers at competitive rates, PNB Housing Fianance said in a government filing.

Both organizations will jointly carry out a due diligence and jointly procure the loan in an agreed relationship. PNB Housing will serve customers throughout the credit life cycle including procurement, documentation and collections with an information exchange agreement with Yes Bank.

In 2020, the Reserve Bank of India allowed home finance companies to co-form with banks to enable non-bank financial firms (NBFCs) and other banking institutions to provide mutually beneficial risk assessment services.

The revised joint lending model, introduced last November, gives lenders more flexibility to provide higher credit to the unserved and underserved populations.

Rajan Suri, Business Head for Retail at PNB Housing Finance, said the Indian financial sector is going through a historic upheaval with most banks and NBFCs harnessing the power of new technologies to innovate and deliver superior quality products and services to customers.

“The digital transformation has opened up untapped opportunities in the home loan sector. We are seeing steady demand among the working class, especially millennials who want to realize their dream of owning a home early in their careers, ”he said.

Rajan Pental, Global Head of Retail Banking at Yes Bank, said the partnership will go a long way in bringing local expertise to the table and helping the bank strengthen its presence in newer regions.

“We are constantly striving to curate and innovate products that add value to customers and to find meaningful partnerships that will enable us to achieve that goal,” he said.

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