Bank of Baroda has signed an MoU with Centrum Housing Finance Limited (CHFL) for sourcing and financing housing loan borrowers under Co-lending Model (CLM) mechanism.
Harshadkumar T. Solanki, General Manager, Mortgage and Other Retail Assets, Bank of Baroda, and Sanjay Shukla, MD & CEO of CHFL, signed the deal.
CHFL is one of the leading new age housing finance companies providing long-term housing finance to ‘middle class’ India with its presence in tier 2 & 3 cities that are under-served by traditional lenders/banks.
“This tie-up opens up multiple opportunities for both institutions. The Bank will be able to penetrate deep into the markets of tier 2 & tier 3 cities at very competitive rates. Bank would be able to garner more and more housing loan segment business to the extent of Rs.1000 crore in one financial year,” said Solanki.
Reacting to the deal Sanjay Shukla said: “We welcome Bank of Baroda as one of our partners and believe in collaborative approach leveraging each other’s strengths to maximize the credit flow to underserved and un-served segments.