PNB Housing Finance and YES Bank have entered into a strategic co-lending agreement to offer retail loans to home buyers.

“PNB Housing and YES Bank will jointly do due diligence and co-originate the loan at an agreed ratio,” said a statement on Friday.

Under the co-lending agreement, PNB Housing will service the customers through the entire loan lifecycle, including sourcing, documentation and collection with an appropriate information sharing arrangement with YES Bank.

“We have seen steady demand among the working class, especially millennials, who are keen to realise their dream of owning a home early in their careers,” said Rajan Suri, Business Head Retail, PNB Housing Finance, adding that he expects the partnership with YES Bank to help accelerate business growth.

The Reserve Bank of India had, last year, allowed co-origination of housing finance companies (HFCs) with banks to enable non-banking finance companies (NBFCs) and other banking institutions to provide mutually-beneficial risk assessment services.

“The revised co-lending model, introduced in November 2020, gives lenders greater flexibility vis-a-vis offering higher credit for the unserved and underserved segments of the population,” the statement said.

Rajan Pental, Global Head, Retail Banking, YES Bank, said the partnership will provide a wider range of real estate financing options to borrowers as well as ease of loan sanctions at the borrower’s convenience through digital lending platforms.

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