Around 4.7 crore customers of the India Post Payments Bank (IPPB) will be able to access home loans, from a strategic partnership formed between the payments bank and HDFC for proving home loans.
IPPB seeks to make HDFC’s home loan products and expertise available to its customers across India by using its country-wide network of 650 branches and over 1,36,000 banking access points (Post offices), according to a statement from HDFC.
IPPB and HDFC Ltd signed a Memorandum of Understanding (MoU) on the strategic cooperation on Monday.
The collaboration intends to make HDFC’s home loans more accessible to consumers, particularly in unbanked and underserved areas where many people have limited or no access to credit, allowing them to realise their dream of owning a home. Home loans will be made available through almost 190,000 banking service providers (Postmen and Gramin Dak Sevaks),” according to the IPPB.
According to the MoU, HDFC Ltd will handle credit, technical and legal evaluations, processing, and disbursement for all home loans, while IPPB will handle loan sourcing.
Financial inclusion cannot be reached without enabling access to credit, according to IPPB MD J Venkatramu, who noted that a major portion of consumers does not have a bank or financial institution providing home loans in their area.
According to him, the alliance’s goal is to make home loans more available and accessible through a digitally enabled agent banking channel and to establish IPPB as a one-stop shop for all banking needs, including credit.
HDFC MD Renu Sud Karnad commented on the agreement, saying, “This alliance would go a long way to promote affordable housing in the remotest parts of our country, in keeping with the Prime Minister’s objective of Housing for All.”
IPPB has offered a variety of innovative and distinct banking products and services to meet the demands and expectations of various customer categories since its founding, as well as facilitating digital adoption at the last mile through an assisted banking model.
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