India Mortgage Guarantee Corporation (IMGC) on Thursday announced its partnership with Muthoot Homefin (India) Limited (MHIL) to offer mortgage-backed home loan products to MHIL clients seeking home loans in the affordable housing segment.
Muthoot Homefin aims to leverage mortgage collateral as a risk mitigation tool as demand for affordable and middle-income housing increases. 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, MHIL said in the official statement.
The loan offers are aimed at borrowers who work for individuals or MSMEs and receive a cash salary to government retirees who have limited access to a home loan with a pension as their only source of income. They can get a home loan with a maturity of up to 70 years and borrowers who have verifiable income but minimal documentary evidence for the same. Self-employed borrowers with a higher capital injection into the property can also avail this loan with minimal documentation and under this program, the term of the home loan is extended for an additional 10-15 years beyond the retirement age, depending on the profile of the borrower.
“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 under its Azad-i75 program for affordable homes.This is a three-way win-win partnership between MHIL, its customers and IMGC,” said Rajeev Khond, CEO of MHIL.
IMGC is India’s leading mortgage guarantee company and works with lenders to provide mortgage guarantee cover and promote early home ownership. The Company offers various alternative products for self-employed clients, including banking products, low LTV products and rated income products.
“We look forward to partnering with Muthoot and expanding our mutual footprint. The product was developed using a calibrated approach and we believe in constant scaling. Muthoot has ambitious plans for the next fiscal year and we are delighted to partner with them on this journey,” said Mahesh Misra, CEO of IMGC.
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