Edelweiss Housing, Bank of Baroda partner for Co-Lending on Home Loans
Edelweiss Housing Finance Limited (EHFL), a subsidiary of Edelweiss Financial Services Limited, announces a strategic agreement with Bank of Baroda India’s third largest public sector bank, for co-lending of home loans to self-employed entrepreneurs and salaried customers. Edelweiss Housing Finance Limited is one of the early movers to enter into a Co-Lending arrangement with a Bank in the housing finance space.
This partnership involves sharing of risks and rewards between EHFL and Bank of Baroda and aims to create a conducive lending environment for home-loan seekers. 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. Vikramaditya Singh Khichi, Executive Director at Bank of Baroda said , “In line with the objective to increase our reach to maximum number of prospective borrowers, we are happy to partner with Edelweiss Housing Finance to further scale our market share in the Home loan segment, as well as support entrepreneurs and salaried persons.”
Speaking on the development, Rajat Avasthi, CEO, EHFL, said, “We are excited to work with an esteemed national bank like Bank of Baroda and are looking forward to fulfilling the increasing demand for home loans and helping people meet their aspirations of owning a home. Easy availability of home loans will lead to higher demand in the real estate sector, which is a key driver of economic growth because of the jobs it creates and the industries and small-scale businesses it sustains.’’
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 channelizing much needed liquidity to those who need it the most.