LIC Housing Finance jumped 4.47% to Rs 422.85 after the company and India Post Payments Bank (IPPB) announced a strategic partnership for providing home loan products to over 4.5 crore customers of IPPB.
Through its network of 650 branches and over 1,36,000 banking access points, IPPB will make LICHFL's home loan products accessible to its customer's pan-India.
As part of the Memorandum of Understanding (MoU), credit underwriting, processing, and disbursement for all home loans will be handled by LIC Housing Finance (LICHFL) with IPPB responsible for sourcing. The alliance with LICHFL is part of IPPB's strategy to expand its range of products and services, and to cater to the banking and financial needs of diverse customers, especially unbanked and underserved, across the country.
Currently, IPPB is distributing various general and life insurance products through partnerships with leading insurance companies, and credit products is a natural extension for the customers at the last mile. IPPB's on-ground workforce of nearly 2,00,000 postal employees (Postmen and Gramin Dak Sevaks) equipped with micro- ATMs and biometric devices through its innovative Doorstep Banking Service will play a significant role in offering LICHFL's housing loans.
LIC Housing Finance, offers home loan starting from 6.66% for loans up to Rs 50 lakh for salaried individuals. The rate of interest offered is linked to the borrower's creditworthiness, as reflected by their CIBIL scores.
LICHFL's unique home loan product - Griha Varishtha is designed for retired or serving employees of PSU insurers, Central/State government, railways, defence, banks etc. entitled to pension under Defined Benefit Pension Scheme. The age of the borrower at entry of the loan can be up to 65 years and the loan tenure is till the attainment of 80 years of age or maximum up to 30 years, whichever is earlier. Under this product LIC HFL offers EMI waiver of up to 6 EMls during the tenure of the loan to the borrower.
LIC Housing Finance's consolidated net profit slumped 81.7% to Rs 151.07 crore on a 2.4% decrease in total income to Rs 4,867.22 crore in Q1 June 2021 (Q1 FY22) over Q1 June 2020 (Q1 FY21).
LIC Housing Finance is one of the largest housing finance companies in India. As of 30 June 2021, Life Insurance Corporation of India (LIC) held 40.31% stake in the company.
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