Home First Finance Company India on Friday announced that it has entered into a strategic co-lending partnership with Union Bank of India for providing home loans to customers at competitive interest rates.
The partnership aims at leveraging the strengths of both entities to provide a seamless experience to retail home loan customers in the priority sector. The tie uo will also enable HomeFirst to expand its product offerings to customers in the geographies it operates, while continuing to leverage its technology led customer-first approach.Under this partnership, HomeFirst will originate loans as per the agreed credit policy of Union Bank of India in line with the provisions of RBI's co-lending model. HomeFirst will retain minimum 20% of the loan on its book while 80% will be on Union Bank's book. HomeFirst will act as a servicing agent for the loan accounts sourced under this partnership throughout the life cycle of the loan.
The partnership is an outcome of the co-lending framework laid down by Reserve Bank of India (RBI) which provides a collaboration model to benefit from the low-cost funding model of a bank and the cost-efficient sourcing and servicing capabilities of a non-bank.
Commenting on the agreement, Manoj Viswanathan, MD & CEO of Home First Finance said, We are pleased to partner with Union Bank of India. We can now leverage Union Bank of India's deposit-led franchise and complement that with our strong technology-led distribution to provide efficient home loan solutions to a wider gamut of customers. This partnership is one more step in our mission to be the fastest provider of home finance for the aspiring middle class, with ease and transparency.
Home First Finance Company India is a technology driven affordable housing finance company (HFC) focused on first-time home buyers in low and middle-income groups. It primarily offers housing loans for the purchase or construction of homes.
The housing finance company's net profit surged to Rs 44.87 crore in Q2 FY22 from Rs 14.33 crore in Q2 FY21. Total income increased by 34.3% YoY to Rs 146.16 crore during the quarter. Total CRAR was at 56.4% and Tier I capital stood at 55.2% as on 30 September 2021.
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Shares of Home First Finance were trading 0.03% lower at Rs 830.30 on BSE.
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