India Mortgage Guarantee Corporation (IMGC), India’s first and only Mortgage Guarantee Company, announces its partnership with MuthootHomefin (India) Limited (MHIL) to offer innovative Mortgage Guarantee backed home loan products to MHIL’s Home Loan customers in the Affordable Housing segment.
With the increased demand for affordable and mid-income housing, MuthootHomefin aims to leverage Mortgage Guarantee as a risk mitigation tool. The tie-up with IMGC will help MuthootHomefin deepen its penetration in existing markets across its 108 branches /locations, thereby enabling homeownership in the affordable Housing segment.
Speaking on the partnership, Mr. Mahesh Misra, CEO, IMGC said,” 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.
As the first ‘Mortgage Guarantee’ company in India, IMGC’s endeavor is to work with lenders to provide mortgage guarantee cover and promote early homeownership. Given that the housing shortage is estimated at over 25 million. Affordable housing will play significant role as a catalyst for growth.”
IMGC is well equipped and uniquely positioned to manage Risk for Mortgage Guarantee loans in the Indian market. The firm has tie-ups with more than 19 lenders comprises of Banks, Housing Finance Companies and NBFCs and it has guaranteed home loans worth Rs 12,520 crore to more than 70,000 home loan borrowers.
Speaking on the tie-up, Rajeev Khond, CEO, MuthootHomefin (India) Limited, commented, “This partnership fits in the MuthootHomefin’s promise “Kum Mein Jyada, MuthootHomefin ka wada” to their customers. 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”
The program between IMGC and MuthootHomefin(I) Ltd. has been designed in a manner to address the needs of wide range of customers through varied products:
- Cash Salaried Program: The program is targeted at borrowers who work for individuals or MSME and receive salary in cash mode from their employer.
- Enhanced Loan Tenor: With this program, the home loan tenure is extended to additional 10 to 15 years beyond retirement age, depending upon the borrower profile.
- Pension Program: For government pensioners who have limited access to a home loan, with pension as only source of income, this program offers home loan with loan maturity up to 70 years of age
- High Networth Program: Self employed borrowers with higher equity infusion in the property can avail this loan with minimal documentation
- Assessed Income Program: This program is targeted for borrowers who have verifiable income but minimal documentary evidence for the same