India Mortgage Guarantee Corporation (IMGC) has announced its strategic partnership with the Bank of India (BOI) to offer mortgage guarantee-backed home loan products.

“This collaboration will focus on salaried and self-employed home loan customers in the affordable housing segment. Leveraging IMGC’s guarantee expertise and BOI’s network of over 5,100 branches across India, this collaboration will enable the public sector bank to provide home loan products with greater flexibility and security to potential homeowners,” IMGC said in a statement.

IMGC’s guarantee will mitigate the risk of defaults for the bank, allowing them to potentially offer more favorable loan terms to borrowers.

With the rising demand in the affordable housing segment, this product aims to make home ownership more accessible for a wider range of borrowers in India, the Corporation said.

Mahesh Misra, MD & CEO of IMGC, said, “The BOI–IMGC tie-up will enable both institutions to expand coverage in their target borrower segments. The products will promote financial inclusion and aid in early home ownership.”

A K Pathak, Chief General Manager, BOI said, “The bank has launched a home loan product with mortgage guarantee provided by IMGC to strengthen credit delivery system and facilitate flow of credit to affordable housing sector.”