India Post Payments Bank and LIC Housing Finance Ltd have announced a strategic partnership to provide home loan products to over 4.5 crore customers of India Post Payments Bank. Through its network of 650 branches and over 136,000 banking access points, IPPB aims to make LIC Housing Finance's home loan products accessible to its customer's pan-India.
The Memorandum of Understanding (MoU) signed between both the companies says credit underwriting, processing, and disbursement for all home loans will be handled by LIC Housing Finance with IPPB responsible for sourcing.
The alliance will help IPPB expand its range of products and services, and cater to the banking and financial needs of customers, especially unbanked and underserved, across the country.
Currently, IPPB is distributing various general and life insurance products through partnerships with leading insurance companies, and credit products is a natural extension for the customers at the last mile.
IPPB's on-ground workforce of nearly 200,000 postal employees (Postmen and Gramin Dak Sevaks) equipped with micro-ATMs biometric devices through its innovative doorstep banking service will play a significant role in offering LICHFL's housing loans.
J Venkatramu, MD & CEO, India Post Payments Bank said, "Easy access to credit for buying a house is an important prerequisite towards achieving inclusive growth. Since its start, IPPB is committed to promoting financial inclusion among low-income and underbanked segments at the last mile by leveraging the unparalleled network of post offices, and technology-driven banking solutions."
LIC Housing Finance Y Viswanatha Gowd said the strategic MoU with IPPB will help the company deepen its market penetration and enable it to increase LICHFL's home loan product outreach in untapped geographies across the country. "With an unmatchable presence of post offices, 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."
LIC Housing Finance Ltd offers home loans starting from 6.66 per cent for loans up to Rs 50 lakh for salaried individuals. The rate of interest offered is linked to the borrower's creditworthiness, as reflected by their CIBIL scores.
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