“Co-lending partnership with HDFC Ltd will act as a cornerstone to IBH’s new balance-sheet light growth business model,” IBH said in a release.
Both the home financiers will frame a common credit policy with IBH originating retail housing loans. While HDFC will retain 80 percent of any such credit on its book, the rest 20 percent will go to IBH’s loan book. Indiabulls will service the loan account throughout the life cycle of the loan.
An occasion where two large housing finance companies are inking co-lending pacts is rarely seen, dealers said.
Local rating company CRISIL Ratings graded IBH with double-A (stable outlook). Last month, CRISIL Ratings revised its rating outlook on the long-term debt instruments and bank facilities to ‘Stable’from ‘Negative’ while reaffirming the rating at ‘CRISIL AA’.
On other hand, HDFC continues to command the highest creditworthiness with triple-A rank (Stable).
Moreover, technology led co-lending will enable IBH to offer a convenient and seamless experience to its customers. It also helps expand its reach to smaller towns and cities of the country.
Companies have not mentioned home loan rates to be offered under the co-lending window.