Shriram Housing Finance, Punjab & Sind Bank Sign Co-lending Agreement
Shriram Housing Finance Limited (SHFL) has signed a co-lending agreement with Punjab and Sind Bank (PSB) for business loans against affordable homes.
The two entities will jointly service the self-employed customers as per the co-lending model (CLM) of the Reserve Bank of India (RBI).
Under the co-lending arrangement, SHFL will target self-employed customers for business loans against their property in the affordable housing segment with PSB.
Commenting on the partnership, Ravi Subramanian, MD & CEO of Shriram Housing Finance, said, “There is a wide credit gap that the self-employed segment faces and SHFL with the support of our co-lending partners will explore bridging some of this gap.”
The need for affordable housing is being driven by the constantly growing working population.
“Through the co-lending model, we aim to cater to the needs of the informal and middle-income population by leveraging the balance sheet of PSB and our expertise in underwriting affordable home loans,” Mr Subramanian added.
Co-lending is an arrangement where the loan origination is by one entity but the risk is shared by two entities.
Swarup Kumar Saha, MD & CEO, Punjab & Sind Bank said, “Punjab and Sind Bank and Shriram Housing Finance Limited have entered into a strategic partnership under the Co-Lending agreement to expand the credit outreach to unserved customers. This Co-lending partnership also aims at expanding the financial inclusion initiatives of the Bank
