Indiabulls, HDFC join hands to offer home loans at competitive rates
Real Estate

Indiabulls, HDFC join hands to offer home loans at competitive rates

Indiabulls Housing Finance Ltd has tied up with finance major HDFC Ltd for a strategic co-lending partnership to offer housing loans to homebuyers at competitive rates.

As per the agreement, Indiabulls Housing Finance will originate retail home loans as per the jointly-drawn up credit policy and retain 20% of the loan in its books, while the remaining 80% will be on HDFC Ltd's books. The company said it would service the loan account throughout the life cycle of the loan.

In September 2018, the Reserve Bank of India (RBI) had first allowed banks to co-originate priority sector loans with non-banks, given Non-Banking Financial Companies (NBFCs) had at least 20% exposure in the joint loan. Under the co-origination model, borrowers get an all-inclusive interest rate as may be agreed upon by both lenders.

As of 31 December, 65% of Indiabulls' asset book consisted of housing loans and its total loan book stood at Rs 70,282 crore, while HDFC Ltd had a loan book of Rs 5.52 lakh crore during the same period.

Co-lending is a process in which two lenders come together where the smaller one originates the loan, performs credit appraisal and disburses a small amount of the total loan. After that, the larger lender steps in to lend a major share of the loan.

Indiabulls Housing Finance Ltd is a mortgage lender headquartered in Gurugram. It is one of India's largest housing finance firms and is regulated by the National Housing Bank.

Image Source


Also read: HDFC Capital, Cerberus tie-up to help residential projects

Also read: Why housing went through the roof during Covid: Care Ratings

Indiabulls Housing Finance Ltd has tied up with finance major HDFC Ltd for a strategic co-lending partnership to offer housing loans to homebuyers at competitive rates. As per the agreement, Indiabulls Housing Finance will originate retail home loans as per the jointly-drawn up credit policy and retain 20% of the loan in its books, while the remaining 80% will be on HDFC Ltd's books. The company said it would service the loan account throughout the life cycle of the loan. In September 2018, the Reserve Bank of India (RBI) had first allowed banks to co-originate priority sector loans with non-banks, given Non-Banking Financial Companies (NBFCs) had at least 20% exposure in the joint loan. Under the co-origination model, borrowers get an all-inclusive interest rate as may be agreed upon by both lenders. As of 31 December, 65% of Indiabulls' asset book consisted of housing loans and its total loan book stood at Rs 70,282 crore, while HDFC Ltd had a loan book of Rs 5.52 lakh crore during the same period. Co-lending is a process in which two lenders come together where the smaller one originates the loan, performs credit appraisal and disburses a small amount of the total loan. After that, the larger lender steps in to lend a major share of the loan. Indiabulls Housing Finance Ltd is a mortgage lender headquartered in Gurugram. It is one of India's largest housing finance firms and is regulated by the National Housing Bank. Image SourceAlso read: HDFC Capital, Cerberus tie-up to help residential projects Also read: Why housing went through the roof during Covid: Care Ratings

Next Story
Infrastructure Urban

What Industry Wants!

The construction industry is gearing up for Budget 2025 with high expectations. As one of India’s key economic drivers, the sector is eagerly anticipating reforms and policies to address pressing challenges such as high input costs, funding gaps, and sustainability demands. Industry leaders across real estate, infrastructure, construction materials, and logistics have shared their wishlists, urging the government to focus on GST rationalization, increased CAPEX, and green initiatives.This year’s budget presents an opportunity for the government to not only tackle existing bottlenecks but a..

Next Story
Infrastructure Urban

Messe Stuttgart, Startup India Tie-Up to Boost Funding

The logistics market in India is poised for significant growth, with a projected revenue of $357.3 billion by 2030. Despite this huge potential, a recent McKinsey & Company report highlights the decline in logistics funding following the pandemic that remains a significant concern. After receiving unprecedented funding of $25.6 billion in 2021, venture capital investment in logistics startups fell sharply to $2.9 billion in 2023—a nearly 90 per cent decrease, marking the lowest since 2015. This pullback from investors is attributed to several factors, including high interest rates, a glo..

Next Story
Infrastructure Transport

JK Tyre Strengthens Road Safety Commitment

Reinforcing its unwavering commitment to road safety, JK Tyre & Industries, a leader in the tyre manufacturing industry, partnered with the Delhi Traffic Police to organise a comprehensive Road Safety Awareness Week. This initiative, held as part of National Road Safety Month (January 1–31, 2025) spearheaded by the Ministry of Road Transport and Highways (MoRTH), aimed to foster responsible driving habits and reduce road accidents. Under the theme ‘Sadak Suraksha Jeevan Raksha,’ the initiative commenced on January 16, 2025, at the Delhi Police Traffic Training Park, BKS. The program feat..

Hi There!

"Now get regular updates from CW Magazine on WhatsApp!

Join the CW WhatsApp channel for the latest news, industry events, expert insights, and project updates from the construction and infrastructure industry.

Click the link below to join"

+91 81086 03000