Central Bank of India inks co-lending pacts with Indiabulls Housing, IIFL Home Finance

Central Bank of India. | Representative image

State-owned Central Bank of India on Monday announced co-lending partnerships with NBFC players Indiabulls Housing Finance and IIFL Home Finance.

Under this arrangement, non-banking finance companies (NBFCs) will originate and process retail home loans while Central Bank of India will take into its book 80 per cent of the housing loan under direct assignment transactions, the lender said in separate regulatory filings.

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The bank said it has entered into strategic co-lending partnership with Indiabulls Housing Finance and IIFL Home Finance to offer housing loans under priority sector to homebuyers at competitive rates. The partnership will result in a greater disbursement of housing loans by Central Bank of India, Indiabulls HFL and IIFL HFL, the bank said.

NBFCs will service the loan account throughout the life cycle of the loan. The lender said this arrangement will help all the three players expand their reach across India.

In November last year, the Reserve Bank had announced a Co-Lending Model (CLM) scheme under which banks can provide loans along with NBFCs to priority sector borrowers based on a prior agreement.