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SBI, IMGC sign MOU to offer mortgage guarantee backed home loan

Press Trust of India  |  New Delhi 

India's largest lender SBI and Mortgage Guarantee Corporation (IMGC) today signed a pact to offer mortgage guarantee scheme for prospective non-salaried and self-employed home loan customers.

The offering will help increase home loan eligibility up to 15 per cent within the regulatory norms, the of (SBI) said in a statement.

"With the rising demand in affordable housing segment, this product aims to provide home to select target audience at better terms," it said, adding that SBI would be the to provide mortgage backed to non-salaried class.

"MoU (Memorandum of Understanding) between SBI and IMGC is a strategic initiative which will enable us to improve housing loan volumes in non-salaried segment.

Under this product applicant can avail higher based on risk grade of the borrower, by opting for IMGC default guarantee cover," said P K Gupta, MD (Retail & Digital Banking), SBI.

SBI further said the MoU with IMGC will pave the way for the to introduce many more products in the mortgage guarantee backed home loan segment to fulfil the needs of Indians of buying their dream homes.

"The exclusive arrangement with SBI is aligned to our joint goal of responsibly expanding the housing market in India, through innovative product offerings," Mahesh Misra, CEO, IMGC.

IMGC is a joint venture between National Housing Bank, Genworth Inc and It is providing mortgage default guarantee to the lending Institutions in

As on December 31, 2017, SBI had a deposit base of Rs 26.51 lakh crore. It has 32.16 per cent market share in home loans and 35.54 per cent market share in auto loan.

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

First Published: Mon, March 19 2018. 19:25 IST