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Mortgage guarantee company 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 MHIL’s customers seeking home loans in the affordable housing segment.
Muthoot Homefin aims to leverage mortgage guarantee as a risk mitigation tool as demand for affordable and mid-income housing increases. The tie-up with IMGC will help Muthoot Homefin deepen its penetration in existing markets across its 108 branches/locations, enabling homeownership in the affordable housing segment, MHIL said in the official statement.
The loan offerings are targeted at borrowers who work for individuals or MSME and receive salary in cash at government pensioners who have limited access to a home loan with pension as the only source of income. They can get a home loan with maturity up to 70 years of age and those borrowers who have verifiable income but minimal documentary evidence for the same. Self-employed borrowers with higher equity infusion in the property can also avail this loan with minimal documentation and under this program, home loan tenure is extended to additional 10 to 15 years beyond retirement age, depending upon the borrower profile.
“Mortgage guarantee will enable MHIL to allow higher loan amount (LTV ratio) to the customers at lower rates of interest. MHIL is currently offering ROI starting from 6.5% p.a. to Economically Weaker Sections under its Azad-i75 programme for Affordable Houses. It’s a triple Win partnership among MHIL, its customers and IMGC," said Rajeev Khond, CEO, MHIL.
IMGC is the first mortgage guarantee company in India and works with lenders to provide mortgage guarantee cover and promote early homeownership. The company provides various surrogate products for self-employed customers, which include banking products, low LTV products and assessed income products.
“We look forward to partnering with Muthoot and expand our mutual footprint. 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," said Mahesh Misra, CEO, IMGC.
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