The collaboration of both the financial entities will result in greater disbursement of Housing Loans by the Central Bank of India & Indiabulls HFL.
As per the agreement, Indiabulls HFL will originate and process retail home loans as per jointly formulated credit parameters & eligibility criteria and the Central Bank of India will take into its book 80% of the Housing Loan under direct assignment transactions on mutually agreed terms. Indiabulls HFL will service the loan account throughout the life cycle of the loan.
Central Bank of India said, "This Co-lending arrangement is expected to help both the entities to` offer convenient experience & customer delight to their home loan customers as well as help expand their reach across India."
Indiabulls HFL is an RBI regulated housing finance company with a pan India branch network and has a track record of customer acquisition.
On Sensex, the Central Bank of India finished at Rs23 per piece up by 8%.