Home First Finance comes into strategic co-lending partnership with Union Bank of India
Home First Finance Company India announced that it has entered into a strategic co-lending partnership with Union Bank of India for providing home loans to customers at competitive interest rates. Home First Finance Company India is a technology driven affordable housing finance company (HFC) which aims on first-time home buyers in low and middle-income groups. It offers housing loans for the purchase or construction of homes at first.
The partnership focuses at leveraging the strengths of both entities to provide a seamless experience to retail home loan customers in the priority sector. It will also enable HomeFirst to expand its product offerings to customers in the geographies it operates, while continuing to leverage its technology led customer-first approach.
HomeFirst acts as a servicing agent for the loan accounts sourced under this partnership throughout the life cycle of the loan.
Under this partnership, HomeFirst will provide loans as per the agreed credit policy of Union Bank of India in line with the provisions of RBI's co-lending model and HomeFirst will retain minimum 20% of the loan on its book while 80% will be on Union Bank's book.
The partnership is the result of the co-lending framework laid down by Reserve Bank of India (RBI) which provides a collaboration model to profit from the low-cost funding model of a bank and the cost-efficient sources and services of a non-bank.
Commenting on the agreement, Manoj Viswanathan, MD & CEO of Home First Finance said, We are pleased to partner with Union Bank of India. We can now leverage Union Bank of India's deposit-led franchise and complement that with our strong technology-led distribution to provide efficient home loan solutions to a wider gamut of customers. This partnership is one more step in our mission to be the fastest provider of home finance for the aspiring middle class, with ease and transparency.