All loans will be processed in accordance with the Standard Operating Procedures (SOPs) and the loan eligibility criteria as specified by HDFC. The methodology will be the same as is done by HDFC while appraising its loans. Post the initial appraisal, the loans will be approved by a senior official of HDFC and accordingly credit will be controlled by HDFC.
The loans under the program will be in the funding ratio of 80:20 (80% of the loan with HDFC and 20% Indiabulls HFL). Under the program, 20% of the credit risk by way of direct exposure shall be on the Indiabulls HFL's book till the time the loan is repaid and Indiabulls HFL will not assign its portion of the loan to any third party. Hence, Indiabulls HFL will be invested in the arrangement through the life of the loan.
HDFC will continue to have oversight on the programme post approval of loans, through the disbursement stage, as well as the post disbursement stage through the life of the loan.
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