India Post Payments Bank (IPPB) and LIC Housing Finance Ltd (LICHFL) on Tuesday announced a strategic partnership for providing home loans to over 4.5 crore customers of IPPB.

As part of the Memorandum of Understanding (MoU), all home loans’ credit underwriting, processing, and disbursement will be handled by LICHFL, with IPPB responsible for sourcing.

IPPB, which has an extensive network of 650 branches and more than 1.36 lakh banking access points, will make LICHFL’s home loan products accessible to its customer’s pan-India, according to a joint statement.

IPPB’s on-ground workforce of nearly 2 lakh postal employees (Postmen and Gramin Dak Sevaks), equipped with micro ATMs and biometric devices and offering Doorstep Banking Service, will play a significant role in providing LICHFL’s housing loans, it added.

IPPB is currently distributing various general and life insurance products through partnerships with leading insurance companies, and credit products are a natural extension for the customers at the last mile, the statement said.

J Venkatramu, MD & CEO, IPPB, said, “Easy access to credit for buying a house is an important prerequisite towards achieving inclusive growth.

“...The partnership with LICHFL is a significant tie-up in IPPB's journey to become one of the largest platforms for availing credit products by our customers for meeting various needs...”

Y Viswanatha Gowd, MD & CEO, LICHFL, said this strategic MoU with IPPB will help LICHFL to further deepen its market penetration.

“...We see this strategic partnership as a significant step that will help our long-term business growth and improve our market share.

"This is in line with the Company’s objective to increase business contribution from Tier 2 markets and beyond,”Gowd said.