Bank of Baroda (BoB) has signed a memorandum of understanding (MoU) with Centrum Housing Finance (CHFL) for sourcing and financing housing loan borrowers under co-lending model.
Harshadkumar T. Solanki, General Manager – Mortgage & Other Retail Assets, Bank of Baroda, said that with this tie-up the bank will be able to penetrate deep into markets in Tier 2 and Tier 3 cities at competitive rates.
Bank of Baroda would be able to garner housing loan business to the extent of ₹1,000 crore in one financial year, he added.
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Sanjay Shukla, MD and CEO, CHFL, said the collaborative approach involved in co-lending helps maximise credit flow to underserved and unserved segments.