Capri Global Housing Finance, SBI signs co-lending agreement for housing loans

Capri Global Housing Finance Ltd today announced that it has entered into a co-lending alliance for housing loans with the State Bank of India (SBI). The collaboration aims at offering housing loans under the priority sector to eligible homebuyers at competitive interest rates across its 110 touchpoints in India. The loan disbursement under this arrangement would commence from March 2022.

Capri Global Housing Finance, a wholly-owned subsidy of Capri Global Capital Ltd, with focus on the Affordable Housing Finance space in a release said, "The company through its diversified network of branches across ten states and Union Territories will originate and process home loans as per mutually agreed parameters with SBI In line with the co-lending framework laid by the Reserve Bank of India (RBI)."

Capri Global Housing Finance Ltd will act as a servicing agent for the loan accounts sourced under this partnership throughout the loan's life cycle and retain 20 per cent of the loan on its book, whereas SBI will maintain 80 per cent of the loan. The co-lending framework will collaborate with the operational management expertise of Capri Global Housing Finance Ltd and the low-cost fund of SBI to offer an affordable credit solution to the borrowers.

Dinesh Khara, Chairman, SBI, said, "We are glad to have joined hands with the HFCs under the co-lending program. This collaboration will enhance our distribution network, as we aim to extend our credit reach to more Home Loan borrowers of the unserved and underserved segments. Such partnerships align with our commitment to accelerate effective and affordable credit to small homebuyers in India and contribute to the vision of 'Housing for All by 2024."

Mr. Rajesh Sharma, Managing Director, Capri Global Capital Ltd, said, "We are pleased to join hands with India's largest bank. This partnership will help increase both enterprises' profitability and expand respective home loan portfolios. It will also allow both the financier to penetrate deep into the markets of tier II and tier III cities at very competitive rates. The alliance will leverage the comparative advantages of both entities to offer an efficient and seamless experience to home loan borrowers. Since its inception, Capri Global Housing Finance Ltd has been at the forefront of giving shape to homeownership by offering credit to aspirational India. We are confident that the collaboration with the country's biggest lender will open up more opportunities for home finance to every credit-worthy borrower and act as an agent of change in fulfilling the dreams of owning a home."

Capri Global Housing Finance Ltd is offering credit to the underserved borrowers of the society to drive financial inclusion and create large-scale social impact through financial empowerment. As of December 31, 2021, the company has offered home loans to 17,500+customer and helped them achieve the dream of owning a home.