Union Bank of India (UBI) and Home First Finance Company India Ltd (HomeFirst) enter into a strategic co-loan partnership to provide home loans to clients at competitive interest rates. The partnership aims to take advantage of the strengths of the two entities to offer a transparent experience to individual mortgage clients in the priority sector.
This partnership will allow HomeFirst to expand its product offerings to customers in the geographies where it operates, while continuing to leverage its customer-centric, technology-driven approach.
UBI (established in 1919) is one of the oldest and largest public sector banks in India with a total deposit base of over Rs 9.14 Lakh Crores and an Advance Book (AUM) of Rs 6 , 35 Lakh Crores as of September 21.
As part of this partnership, HomeFirst will issue loans in accordance with UBI’s agreed credit policy in accordance with the provisions of RBI’s co-loan model. HomeFirst will keep at least 20% of the loan on its book while 80% will be on UBI’s book. HomeFirst will act as the servicing agent for loan accounts obtained through this partnership throughout the loan life cycle.
The partnership is the result of the co-lending framework established by the Reserve Bank of India (RBI) which provides a collaborative model to benefit from a bank’s low-cost funding model and cost-effective sourcing and service capabilities of a non-Bank.
Commenting on the deal, Mr. Manoj Viswanathan, Managing Director and CEO said, “We are delighted to partner with Union Bank of India. We can now leverage the Union Bank of India deposit franchise and complement it with our strong technology driven distribution to provide effective mortgage lending solutions to a wider range of clients. This partnership is one more step in our mission “to be the fastest provider of real estate finance to the budding middle class, with ease and transparency”.
Home First Finance Company India Limited shares were last traded on BSE at Rs. 826.15 from the previous close of Rs. 830.55. The total number of shares traded during the day was 2,872 in more than 380 trades.
The action hit an intraday high of Rs. 837.25 and an intraday low of 823.00. The net turnover during the day was Rs. 2,383,510.00.
Union Bank of India shares were last traded on BSE at Rs. 44.10 from the previous close of Rs. 46.15. The total number of shares traded during the day was 1,422,453 in more than 5,170 transactions.
The action hit an intraday high of Rs. 46.60 and an intraday low of 43.80. The net turnover during the day was Rs. 64082364.00.