Edelweiss group partners Indian Bank for co-lending to priority segment

Diversified financial group Edelweiss on Monday said Edelweiss Housing Finance Ltd and ECL Finance Ltd have entered into co-lending partnership with Indian Bank for lending to priority sector areas.

Diversified financial group Edelweiss on Monday said Edelweiss Housing Finance Ltd (EHFL) and ECL Finance Ltd (ECLF) have entered into co-lending partnership with Indian Bank for lending to priority sector areas.

Agriculture, micro enterprises and advances to weaker sections of the society are amongst the categories that form the priority sector in lending space.

Edelweiss Housing Finance Limited (EHFL) and ECL Finance Limited (ECLF) announce a strategic co-lending agreement for priority sector lending with Indian Bank, one of the largest public sector banks in the country, Edelweiss said in a release.

EHFL and ECLF are Edelweiss group companies.

The lenders recently signed a memorandum of understanding (MoU) under RBI's CLM (co-lending model), significantly expanding the portfolio of lending products available to the target customers, increasing their access to credit, it said.

Indian Bank brings capital flows at low costs, which when combined with Edelweiss' expertise on customer acquisition, credit assessment, servicing and robust technology, will help meet the expanding credit needs of customers, Edelweiss said.

This will expand the reach to underserved markets, enabling priority sector borrowers to get credit at lower costs, given the blended rate of interest. As the country gradually moves out of the pandemic, the credit offered through this partnership will provide customers with access to cost-effective capital, aiding their economic revival and growth, the release stated.

"As we step up lending, delivering a digitally enhanced experience to customers, this co-lending partnership ties into our strategy of being asset light and building a high-quality lending book along with our partner bank," Deepak Mittal, Head, Edelweiss Credit Cluster, said.