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HDFC ties up with IMGC for mortgage guarantee-backed home loan

Press Trust of India  |  New Delhi 

Wednesday said it has partnered with Mortgage Guarantee Corporation (IMGC) for a mortgage guarantee-backed home loan.

Mortgage guarantee is a which compensates lending institutions for losses that may arise if a home owner defaults on a

The risk of the home loan gets transferred from the bank/to the mortgage guarantee company.

With this partnership, will be able to further penetrate home loan market and access an enlarged customer base, it said in a release.

It will help the company offer more loan to a home loan customer on an enhanced eligibility as also it helps customers to avail beyond their retirement period.

said the finer details of the product are being worked out and will be known to market soon.

"Mortgage-guarantee is already a popular product in international market and this partnership will help diversify our offerings to a wider segment of customers.

"This will also help us to support the government's mission under Scheme to provide Housing for all by 2022," HDFC said.

The partnership aims to address middle age-salaried customers, self employed customers and young salaried customers as also a wide segment of unserviced customers.

"We are witnessing great acceptance of our product in the Indian housing sector. We see stepped-up interest in using mortgage guarantee as an effective risk mitigant across lending categories," said Mahesh Misra, CEO, IMGC.

Mortgage guarantee or as it is known in some markets, is well-established in the US, Australia, and with market penetration of 15 per cent in the US and 22 per cent in

In India, mortgage guarantee is on the rise with market penetration between 5-20 per cent across lenders who are leveraging the product to grow their books, HDFC said.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, May 15 2019. 16:36 IST