Housing finance company Home First ties up with Union Bank of India to offer home loans
Under the provision of tie-up, Home First will generate loan as per agreed credit policy of UBI in line with co-lending provision of RBI.
Union Bank of India (UBI) has entered into a strategic partnership with housing finance company Home First to offer home loans to customers at competitive interest rates. Announcing in a press release on Friday, Home First said that this partnership is going to help the company expand its geographic base of existence while simultaneously leveraging its technology-based customer approach. The partnership aims to enable both the entities to provide a seamless experience to retail home loan customers.
The tie-up between Home First and UBI is an outcome of the Reserve Bank of India’s co-lending framework that provides a collaboration model to benefit from the bank’s low-cost finance model and the non-banking entity’s cost-effective sourcing capabilities.
Under the provision of tie-up, Home First will generate loan as per agreed credit policy of UBI in line with co-lending provision of RBI. The housing finance company will keep a maximum of 20 per cent of the loan in its books while the remaining 80 per cent will be recorded in the books of UBI. Home First will act as a service agent for loan accounts received under the partnership during the life cycle of the loan.
UBI is one of the oldest and largest public sector banks with a total deposit base of over Rs 9.14 lakh crore and an advance book (AUM) of Rs 6.35 lakh crore as of September 2021.
Speaking on the development, Manoj Viswanathan, MD & CEO, Home First said that the partnership will allow the company to provide rapid home finance to potential buyers with ease and transparency. He added that by harnessing the deposit based franchise of UBI along with the technology based delivery of HomeFirst, they would be able to provide efficient home loan solutions to a wide base of customers.
Home First is a technology driven housing finance company focused on first time low and middle income home buyers. The company reported over 200 per cent growth in its profit for Q2 FY22 as compared to Q2 numbers of the previous fiscal. From Rs 14.33 crore in Q2 FY21, Home First’s net profit jumped to Rs 44.87 crore in Q2FY22. The company’s total income registered a year-on-year growth of 34.3 per cent and increased to Rs 146.16 crore during the quarter.
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