India’s largest lender SBI and India Mortgage Guarantee Corporation (IMGC) signed a pact to offer mortgage guarantee scheme for prospective non-salaried and self-employed home loan customers.The offering will help increase home loan eligibility up to 15% within the regulatory norms.
The MoU between SBI and IMGC is a strategic initiative which will enable to improve housing loan volumes in the non-salaried segment. With the rising demand in affordable housing segment, this product aims to provide home finance to select target audience at better terms.
Under this product applicant can avail higher finance based on risk grade of the borrower, by opting for IMGC default guarantee cover.
SBI further said the MoU with IMGC will pave the way for the bank to introduce many more products in the mortgage guarantee backed home loan segment to fulfil the needs of Indians of buying their dream homes.
IMGC is a joint venture between National Housing Bank, Genworth Inc International Finance Corporation and Asian Development Bank. It is providing mortgage default guarantee to the lending Institutions in India.