Edelweiss Housing Finance Ltd (EHFL) on Thursday announced a strategic agreement with Bank of Baroda for co-lending of home loans to self-employed entrepreneurs and salaried customers.
The partnership involves sharing of risks and rewards between EHFL and India's third largest public sector bank. For Edelweiss, co-lending represents an alternate model of disbursals that is asset light and creates a sound revenue model for sustainable business.
For self-employed and salaried customers, co-lending provides two key benefits: simplicity of dealing with a single entity for their financing and convenient access to a blended cost-effective rate of interest.
Edelweiss Housing Finance is one of the early movers to enter into a co-lending arrangement with a bank in the housing finance space.
Co-lending is an evolutionary business model of partnership that combines Bank of Baroda's expertise in liabilities with Edelweiss' strong origination expertise and reach.This partnership will expedite the delivery of credit to Indian homebuyers by channelising much-needed liquidity to those who need it the most, said Edelweiss in a statement.
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