Good news for India Post Payments Bank customers looking to buy a house

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India Post Payments Bank (IPPB) on September 8 said it entering into a tie-up with LIC Housing Finance for selling housing finance products to the latter’s 4.5 crore customers. The bank through its robust and extensive network of 650 branches and more than 136,000 banking access points will make LIC Housing Finance Ltd’s (LICHFL) home loan products accessible to its customers pan-India, the statement said. LICHFL will handle credit underwriting, processing, and disbursement for all home loans under the strategic partnership, while IPPB will source the loans.

LIC Housing Finance offers home loans starting from 6.66%  for loans up to Rs 50 lakh for salaried individuals.

Partnership expected to increase IPPB’s reach

The partnership with LICHFL is part of IPPB’s strategy to cater to the banking and financial needs of diverse customers especially those who are unbanked and undeserved, by expanding its range of products and services.

Through partnerships with insurance companies, IPPB already distributes general and life insurance products. Credit products are natural extension for the customers at the last mile, the statement said. Equipped with micro ATMs and biometric devices for doorstep banking, IPPB has an on-ground workforce of nearly 200,000 postal employees (postmen and Gramin Dak Sevaks). This will play a significant role in offering LICHFL’s housing loans.

The bank said that easy access to credit for buying a house is an important prerequisite towards achieving inclusive growth. The partnership with LICHFL is a significant tie-up in IPPB’s journey to become one of the largest platforms for availing credit products by our customers for meeting various needs

The strategic MoU with IPPB will help the company to further deepen the market penetration, the bank said.

Also, the bank would be able to increase the home loan product outreach of LICHFL in untapped geographies across the country. The strategic partnership will also improve the bank’s long-term business growth and improve the market share, with an unmatchable presence of post offices, IPPB said in a statement