LIC Housing Finance Limited (LICHFL) has collaborated with the India Mortgage Guarantee Corporation (IMGC), which provides insurance against loans. Now because of this new partnership LIC housing finance will be able to offer home loans that can be repaid till the age of 75 years.
This will allow company to lend long-term loans to borrower who are not salaried and will also enable them to provide mortgages with higher loan-to-value ratios.
According to the LICHFL MD & CEO Vinay Sah, this will allow the housing finance company to expand its market reach and increase its market penetration by decreasing the restriction on the borrowers profile.
“We will Also be able to tap on the large segment of employees working in SME’s, MSME’s small entities and Self-employed individual. Through this LICHFL would support the vision of “Housing for all” of the government,” Sah said.
He further added that housing finance industry is currently going through interesting times and large & stable lenders like LICHFL are ideally poised to take the leverage.
Sah also alluded to the idea of expanding partnership in the coming future.
IMGC is a four-way joint venture between National Housing Bank, Genworth Inc, International Finance Corporation and Asian Development Bank. The private company provides mortgage default guarantee to financial institution like banks in India.