Money & Banking

Edelweiss Housing Fin, BoB inco-lending deal for home loans

Our BureauMumbai, Nov 28 Mumbai | Updated on November 28, 2019 Published on November 28, 2019

Edelweiss Housing Finance Ltd (EHFL), a subsidiary of Edelweiss Financial Services Ltd (EFSL), has entered into an agreement with Bank of Baroda for co-lending of home loans to self-employed entrepreneurs and salaried customers.

This partnership involves sharing of risks and rewards between EHFL and Bank of Baroda, and aims to create a conducive lending environment for home-loan seekers, EFSL said in a statement.

“For Edelweiss, co-lending represents an alternate model of disbursals that is asset light and creates a sound revenue model for sustainable business. “For self-employed and salaried customers, co-lending provides two key benefits: simplicity of dealing with a single entity and convenient access to a blended cost-effective rate of interest,” the statement said.

EHFL noted that co-Lending is an evolutionary business model of partnership that combines Bank of Baroda’s expertise in liabilities with Edelweiss’ strong origination expertise and reach.

Vikramaditya Singh Khichi, Executive Director, Bank of Baroda, said the partnership is in line with the objective to increase the bank’s reach to the maximum number of prospective borrowers. It will further scale the bank’s marketshare in the home loan segment, as well as support entrepreneurs and salaried persons, he added.

Rajat Avasthi, CEO, EHFL, said: “Easy availability of home loans will lead to higher demand in the real estate sector, which is a key driver of economic growth because of the jobs it creates and the industries and small-scale businesses it sustains.”

Published on November 28, 2019
  1. Comments will be moderated by The Hindu Business Line editorial team.
  2. Comments that are abusive, personal, incendiary or irrelevant cannot be published.
  3. Please write complete sentences. Do not type comments in all capital letters, or in all lower case letters, or using abbreviated text. (example: u cannot substitute for you, d is not 'the', n is not 'and').
  4. We may remove hyperlinks within comments.
  5. Please use a genuine email ID and provide your name, to avoid rejection.