India Mortgage Guarantee Corporation (IMGC) on Thursday announced its partnership with Muthoot Homefin (India) Limited (MHIL) to offer mortgage guarantee backed home loan products to customers in the affordable housing segment.
A mortgage guarantee will enable MHIL to sanction higher loan amount (LTV ratio) to the customers at lower rates of interest, a joint statement said.
The housing finance company is currently offering loans from 6.5 per cent to economically weaker sections under its Azad-i75 programme for affordable houses.
Speaking on the partnership, IMGC CEO Mahesh Misra said, "The product has been developed using a calibrated approach, and we are confident of a steady scale-up. Muthoot has ambitious plans for the next financial year, and we are delighted to collaborate with them in this journey".
IMGC endeavours to work with lenders to provide mortgage guarantee cover and promote early homeownership, the statement said.
With the increased demand for affordable and mid-income housing, Muthoot Homefin aims to leverage mortgage guarantee as a risk mitigation tool, it added.
The tie-up with IMGC will help Muthoot Homefin deepen its penetration in existing markets across its 108 branches /locations, thereby enabling homeownership in the affordable housing segment, MHIL CEO Rajeev Khond said.