Edelweiss Housing Finance (EHFL) has announced a strategic co-lending partnership with Standard Chartered Bank (SCB), for extending loans against property (LAP) to its prospective customers, especially MSMEs. Definitive agreements as per the RBI’s CoLending Model (CLM) have been executed between EHFL and SCB.
EHFL will originate, process, service the loans and retain 20% of the loan on its books, while the remaining 80% will be on the books of SCB.
Customers will not only benefit from blended and cost-effective interest rates but will also find it operationally simple, dealing with a single entity end to end.
Aditya Mandloi, MD and Head, Business Banking, India, Standard Chartered Bank, said, “This partnership will help in leveraging the bank’s diverse product offering along with the distribution strength and strong processing ability of Edelweiss to meet the financial needs within the MSME sector.”
Rajat Avasthi, MD and CEO, EHFL, said, “This partnership acts as a cornerstone to our asset-light growth business model as we look forward to fulfilling the increasing credit demand India is witnessing today.”