Central Bank of India has entered into a strategic Co-Lending Partnership with Home First Finance Company India Limited (HFFC) to offer Home loans to Borrowers at competitive rates, subject to compliance with the applicable law(s) including the applicable guidelines issued by Reserve Bank of India (RBI). The participation by both the entities in this Co-Lending arrangement will result in greater expansion of portfolio by Central Bank of India and Home First Finance Company India Limited.
Home First is a technology driven affordable housing finance Company. The Company's main target segment is salaried customers employed across the various sectors. Company AUM as at March'22 stood at 5,380 Crores spread across ~61684 customers. It currently operates through its 80 branches in 12 states and One Union territory.
Under this arrangement, Home First Finance Company India Limited will originate and process Home Loan proposals under Priority Sector as perjointly formulated credit parameters and eligibility criteria and Central Bank of India will take into its books 80% of the Home Loans under Priority Sector under mutually agreed terms. HFFC will service the loan account throughout the life cycle of the loan. The Co-Lending arrangement is expected to help both the entities to offer convenient experience and customer delight pas well as help expand reach across India.