IIFL HFL join hands with PNB for co-lending

Hyderabad IIFL Home Finance Ltd(IIFL HFL), a Mumbai based financial services companyon Friday announced and signed an agreement with Punjab National Bank (PNB)for co-lending. IIFL HFL expects to grow their loan book by 25 per cent with these associations. The loan sourcing and servicing will be managed by IIFL Home Finance and 80 per cent of the loan will be provided by Punjab National Bank.

The finance company will service the customers through the entire loan cycle, from sourcing, documentation, collection to loan servicing. This association will let the company to further penetrate into affordable Home Loan and secured MSME loan markets and will also strengthen IIFLHFL's portfolio. This arrangement will also help IIFL HFL to offer attractive interest rates to its customers in 17 states, with a focus on Andhra Pradesh, Madhya Pradesh, Gujarat and Karnataka.

This is the fourthagreement signed by the finance company with other banks. Earlier this year, IIFLHFL signed agreements with ICICI Bank for sourcing and servicing of housing loans and loan against property, co-lending with Central Bank of India for home loans and Standard Chartered Bank for extending credit to MSME loans. IIFL HFL has disbursed loans totalling to Rs170 Crores till date under these arrangements.

MonuRatra, CEO and ED, Home Finance Ltd, said: "This tie up with PNB will enable us to further extend our affordable home loans to many more customers and we firmly believe in this model of synergies which shall be fit for both the parties."