Edelweiss Housing Finance Limited (EHFL) said that it has partnered with the State Bank of India (SBI) for co-lending towards priority sector home loans to self-employed entrepreneurs and salaried customers. The company also said that this partnership would benefit the combined reach of both the partners in tier II and tier III markets to ensure timely spending of housing credit to customers.

Under the partnership, both the companies will share risks and rewards involved in the lending business. It aims to create a lending environment for people to fulfil their dream of buying a house, EHFL said in a release. For EHFL, co-lending is an alternate model of asset-light disbursals and creates a sound revenue model for sustainable business. At the same time, for SBI, it brings capital flows at reduced costs, and the partnership provides a more extensive customer reach.

“This partnership will improve our distribution network, as we want to expand our credit reach to more home loan borrowers of different sectors. Such partnerships align with our commitment to accelerate effective and affordable credit to small home buyers in India and contribute to the vision of Housing for All by 2024,” Dinesh Khara, Chairman State Bank of India, said. MD and CEO of EHFL, Rajat Avasthi, also noted that “Owning a home is a dream for every Indian. And this collaboration will help us fulfil that aspiration. I believe easy availability of home loans will also lead to higher demand in the real estate sector.”