To align with the Government of India reform agenda and improve the flow of credit to the unserved and underserved sector of the economy, Punjab National Bank has entered into a Co-Lending arrangement with IIFL Home Finance Limited. By this arrangement, the ultimate beneficiary will get the funds at an affordable rate as the bank will charge less interest rate while NBFC has greater reach.
As per RBI Co-Lending Model (CLM) scheme, under this arrangement, non-banking financial companies (NBFCs) will originate and process the loans first hand. At the same time, Punjab National Bank will take their share of the individual loans on a back-to-back basis in the bank’s books. Under direct assignment transactions, however, NBFC will maintain a (minimum 20%) share of the individual loan on their books. NBFCs will act as a single point of interface for the customer’s and will service the loans throughout the loan tenure.
The MOU is signed by Shri Alok K Goel, General Manager at Punjab National Bank, in the presence of Shri Swarup Kumar Saha, ED at Punjab National Bank and Shri Surendra Kumar Dixit, CGM at Punjab National Bank. The partnership under the said arrangement will result in significant disbursement under the Priority Sector.