LIC Housing and India Post Payments Bank have partnered to sell house loans.

 

Image By: Tierra Mallorca on Unsplash

According to a statement released on Tuesday, India Post Payments Bank (IPPB) has partnered with LIC Housing Loan to market the latter's housing finance products to its 4.5 million customers.

IPPB would make LIC Housing Finance Ltd's (LICHFL) home loan products available to its customers across India through its robust and broad network of 650 branches and more than 136,000 banking access points, according to the announcement.

LICHFL will handle credit underwriting, processing, and disbursement for all house loans under the strategic partnership, while IPPB will source the loans.

The partnership with LICHFL is part of IPPB's objective to diversify its product and service offerings, as well as to meet the banking and financial needs of a wide variety of consumers, particularly the unbanked and underserved, across the country.

IPPB already works with insurance providers to distribute general and life insurance products. According to the statement, credit products are a natural extension for clients at the last mile.

Nearly 200,000 postal workers (postmen and Gramin Dak Sevaks) are equipped with micro ATMs and biometric equipment for doorstep banking by the IPPB. This will be crucial in the provision of LICHFL's home loans.

Also Read -

All Toll Plazas Will Be Removed by the Government! A GPS-based toll tax collection system is being proposed for the entire country.

The government wants Vodafone Idea's promoters to put money into the company before it gets a lifeline.

Tesla is being pursued by the government to build electric cars in India; import duties may be reduced?

"Easy access to credit for buying a house is an important prerequisite for achieving inclusive growth, The partnership with LICHFL is a significant tie-up in IPPB's journey to becoming one of the largest platforms for availing credit products by our customers for meeting various needs, said J Venkatramu, MD and CEO of India Post Payments Bank.

The strategic MoU with IPPB, according to LIC Housing Finance MD & CEO Y Viswanatha Gowd, will assist the company increase its market penetration.

It will allow us to expand LICHFL's home loan product reach into previously underserved areas across the country. We regard this strategic cooperation as a key move that will help our long-term company growth and boost our market share, as we have an unrivalled presence of post offices, he stated.

For salaried persons, LIC Housing Finance offers house loans starting at 6.66 per cent for loans up to Rs 50 lakh.

(Source: Business Standard)