LIC Housing Finance Monday said it has partnered with India Mortgage Guarantee Corporation (IMGC) to offer special loan scheme, under which borrowers can repay the amount till the age of 75 years.
Under the new partnership, IMGC will provide LICHFL with mortgage guarantee which is a kind of financial product that compensates financial institutions for losses that may arise from a default on a mortgage loan, LICHFL said in a release.
This strategic tie-up will help the LICHFL to accommodate more home loan borrowers, increase market penetration besides combating NPAs, it said.
"It will also help LICHFL accommodate more home loan buyers, improve eligibility criteria, extend repayment period and ease restrictions on profile of applicants, who face rejection related to work profile, work place, credit history amongst other reasons which may be unspecified by lending institutions," it said.
Speaking about the tie-up, Vinay Sah, MD & CEO, LICHFL said the partnership with IMGC will help add more home loan borrowers and mitigate risk across lending categories.
"We will also be able to tap into the large segment of employees working in SMEs, MSMEs, small entities and self-employed individuals who have so far been out of the ambit of prospective home loan borrowers. Through this LIC HFL would support the vision of Housing for All by 2022 of the Government of India," Sah said.
Mahesh Misra, CEO, IMGC said: "IMGC and LICHFL teams have worked closely to design customised products that are aligned to LICHFL's end user segment and calibrated expansion strategy.
With the back-up of IMGC's, LICHFL will be in a position to offer extended loan tenure for borrowers till the attainment of age of 75 years. This will help increase in loan quantum and reduce the burden of monthly EMIs for borrowers, Misra said.