HDFC ties up with Indian Post Payments Bank for Home loan distribution

In one of it’s kind of arrangements (especially for HDFC Limited), HDFC has tied up with Indian Post Payments Bank (IPPB) for home loan distribution.

Key points to note –

  • IPPB has about 4.7 crore customers.
  • HDFC’s idea here seems to get aggressive on affordable housing. HDFC said, “The partnership aims to facilitate HDFC Ltd.’s home loans to customers, especially in unbanked and underserved areas with many of them having little or no access to finance, to fulfil their dream of owning a home”.
  • IPPB will offer housing loans through 1,90,000 banking service providers – postmen and gramin dak sevaks.
  • IPPB will be responsible for sourcing of loans whereas credit, technical/ legal appraisals, processing and disbursement will be handled by HDFC.

The step definitely seems to be in the right direction given the inclusive nature of growth and development that India needs.

In my mind only one question – who will be responsible for the collections?

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