Home Credit India (HCIN), a local arm of the international consumer finance provider, has tied-up with Karur Vysya Bank (KVB) for joint lending using end-to-end automated processing which will help the customer get real-time approval and disbursement. The company said that the recent RBI guidelines had led the industry to explore partnership avenues in the new framework with the aim to reach out to the large unbanked customer base.
Under the agreement, HCIN and KVB will disburse loans in a single amount to customers. Anirban Majumder, CFO, Home Credit India, said that under this arrangement, the company would facilitate the sourcing and servicing of the loans originating under this scheme, while, underwriting would be done jointly on real time basis on a fully digitised platform.
"With this partnership and by leveraging the lower cost of funds of KVB, Home Credit India will be able to reach out to a new segment of customer. Going forward, Joint Lending is a successful and practical way of lending for NBFCs and I am pleased that we have pioneered the same with a strong player like Karur Vysya Bank,” he said.
P R Seshadri, managing director and CEO, Karur Vysya Bank, said that the partnership would help the bank leverage HCIN’s large data base, reach out to a segment which it has not pursued aggressively in the past and enable the bank to provide other banking products to customers.
Home Credit India Finance Pvt. Ltd. is a local arm of the international consumer finance provider with operations spanning over Europe and Asia and committed to drive financial inclusion in India. Home Credit India has operations spread over 179 cities across 20 States in India.