India Post Payments Bank (IPPB) under the Department of Posts and LIC Housing Finance Limited on Tuesday announced a strategic partnership under which home loan products will be provided to more than four crore customers of India Post Payments Bank.
With the help of its extensive network of 650 branches and more than 1,36,000 banking access points, IPPB will make LIC Housing Finance's home loan products accessible to its customers pan-India, a statement issued by the Ministry of Communications.
According to the pact signed by the two entities, credit underwriting, processing and disbursement for all home loans will be handled by LIC Housing Finance with IPPB responsible for sourcing.
The alliance with LIC Housing Finance is part of IPPB's strategy to expand its range of products and services and to cater to the banking and financial needs of diverse customers, especially unbanked and underserved, across the country.
Currently, IPPB is distributing various general and life insurance products through partnerships with leading insurance companies and credit products is a natural extension for the customers at the last mile.
LIC Housing Finance offers home loan starting from 6.66 per cent for loans up to Rs 50 lakh for salaried individuals. The rate of interest offered is linked to the borrower's creditworthiness, as reflected by their CIBIL scores.