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Edelweiss Housing Finance Ltd (EHFL) and Bank of Baroda have tied up for co-lending of home loans to self-employed and salaried persons.
EHFL, a subsidiary of Edelweiss Financial Services Ltd, has entered into a strategic agreement with Bank of Baroda (BoB) for co-lending of home loans to self-employed and salaried customers, a statement said on Thursday.
Under the pact, EHFL and BoB will share risks and rewards in creating a conducive lending ecosystem for home loan seekers, the statement added.
For Edelweiss, co-lending represents an alternative 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 benefits of dealing with a single entity for their financing and convenient access to a blended cost-effective rate of interest.
Bank of Baroda Executive Director Vikramaditya Singh Khichi said the pact is in line with the bank's objective to increase its reach to maximum number of prospective borrowers.
"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," said EHFL Chief Executive Officer Rajat Avasthi.
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