India Mortgage Guarantee Corporation (IMGC) has announced its partnership with Muthoot Homefin (India) Limited (MHIL) to offer Mortgage Guaranteed Home Lending products to MHIL’s home lending clients in the affordable housing segment.
With the growing demand for affordable and middle-income housing, Muthoot Homefin aims to leverage mortgage collateral as a risk mitigation tool. The combination with IMGC will help Muthoot Homefin deepen its penetration into existing markets across its 108 branches/sites, enabling home ownership in the affordable housing segment, it said in a statement.
Mahesh Misra, CEO of IMGC, said, “We look forward to partnering with Muthoot and expanding our mutual footprint. The product was developed using a calibrated approach and we are confident of a steady increase. Muthoot has ambitious plans for the next fiscal year. and we are delighted to collaborate with them on this journey.
How will it work
IMGC’s goal is to work with lenders to provide mortgage security coverage and promote early home ownership. With the housing shortage estimated at over 25 million, affordable housing will play an important role as a catalyst for growth.
Rajeev Khond, CEO of Muthoot Homefin (India) Limited, said, “This partnership is part of Muthoot Homefin’s promise ‘Kum Mein Jyada, Muthoot Homefin ka wada’ to its customers. The mortgage guarantee will enable MHIL to provide a higher loan amount (LTV ratio) to customers at lower interest rates. MHIL currently offers a return on investment starting at 6.5% per annum to economically weaker sections under its Azad-i75 program for affordable homes. It is a triple win partnership between MHIL, its customers and IMGC”
The program between IMGC and Muthoot Homefin(I) Ltd. has been designed to meet the needs of a wide range of customers with a variety of products:
Cash Compensation Scheme: The scheme is for borrowers who work for individuals or MSMEs and receive a cash salary from their employer.
Enhanced loan term: With this program, the term of the home loan is extended an additional 10 to 15 years beyond retirement age, depending on the borrower’s profile.
Retirement Program: For government retirees who have limited access to a home loan, with retirement as their sole source of income, this program offers a home loan with a loan term of up to 70 years.
High Networth Program: Self-employed borrowers with a greater equity injection into the property can qualify for this loan with minimal documentation
Assessed Income Program: This program is for borrowers who have verifiable income but minimal documentary evidence for the same
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Posted: Thursday, January 27, 2022, 1:40 PM IST