Shriram Housing Finance Limited (SHFL) has officially revealed its co-lending agreement with the public sector bank, Punjab and Sind Bank (PSB), to offer business loans to those in need of affordable housing. The partnership will allow both institutions to jointly cater to self-employed customers in line with the Reserve Bank of India's (RBI) co-lending model (CLM).
This arrangement will see SHFL focusing on self-employed customers seeking business loans in the affordable housing sector, in collaboration with PSB. SHFL will be responsible for the loan's origination, processing, and servicing. The company has a commendable track record, having provided affordable home loans to over 1.5 lakh customers, particularly targeting middle-income households with informal income sources and employment.
Ravi Subramanian, the Managing Director and CEO of Shriram Housing Finance, expressed his enthusiasm about the partnership, emphasizing their shared commitment to further penetrate the affordable housing finance market. He acknowledged the significant credit gap faced by the self-employed segment and highlighted their intent to address this issue in collaboration with their co-lending partners. He also emphasized the increasing demand for affordable housing driven by the growing working population.
Through the co-lending model, SHFL aims to tap into the expanding informal and middle-income population by leveraging PSB's strong financial foundation and SHFL's expertise in underwriting affordable home loans, as mentioned by Ravi Subramanian.
Swarup Kumar Saha, the Managing Director and CEO of Punjab & Sind Bank, discussed their strategic partnership and its aim to expand their credit outreach to underserved customers while contributing to the bank's financial inclusion initiatives.
Shriram Housing Finance Limited, registered with the National Housing Bank (NHB) and promoted by Shriram Finance Limited, operates through a network of 135 branches and boasts over 2700 employees. As of July 2023, the company serves over 1.5 lakh customers and manages Assets Under Management (AUM) exceeding Rs 10 billion.
