New Delhi [India], Sep 7 (ANI): India Post Payments Bank (IPPB) and LIC Housing Finance Ltd (LICHFL) on Tuesday announced a strategic partnership for providing home loan products to over 4.5 crore customers of IPPB.
Through its extensive network of 650 branches and more than 1.36 lakh banking access points, IPPB will make LICHFL's home loan products accessible to its customer's pan-India.
As part of the memorandum of understanding, credit underwriting, processing and disbursement for all home loans will be handled by LICHFL with IPPB responsible for sourcing.
The alliance with LICHFL is part of IPPB's strategy to expand its range of products and services, and to cater to the banking and financial needs of diverse customers, especially unbanked and underserved, across the country.
LICHFL offers home loan starting from 6.66 per cent for loans up to Rs 50 lakh for salaried individuals. The rate of interest offered is linked to the borrower's creditworthiness, as reflected by their CIBIL scores.
J Venkatramu, Managing Director and CEO of IPPB, said easy access to credit for buying a house is an important prerequisite towards achieving inclusive growth.
"Since its inception till now and going forward, IPPB is committed towards promoting financial inclusion among low-income and underbanked segments at the last mile by leveraging the unparalleled network of post offices and technology-driven banking solutions," he said.
Y Viswanatha Gowd, Managing Director and CEO of LICHFL, said the strategic MoU with IPPB will help the company to further deepen its market penetration and enable it to increase its home loan product outreach in untapped geographies across the country.
"This is in line with the company's objective to increase business contribution from tier two markets and beyond," he said.