SBI, IMGC Sign MOU to Offer Mortgage Guarantee Scheme (Download PDF)

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State Bank of India (SBI) and India Mortgage Guarantee Corporation (IMGC) sign a pact to offer mortgage guarantee scheme for prospective non-salaried and self-employed home loan customers.

Image of Concept & Types of Mortgage

Image of Concept & Types of Mortgage

Image of Concept & Types of Mortgage

How Will the MoU Help?

  • The MoU to help increase home loan eligibility up to 15 % within the regulatory norms, according to SBI.
  • The exclusive arrangement is aligned to the joint goal of responsibly expanding the housing finance market in India, through innovative product offerings
  • The product aims to provide home finance to select target audience at better terms
  • SBI would be the bank to provide mortgage backed home loan product to non-salaried class.

Significance of MoU

  • “MoU (Memorandum of Understanding) between SBI and IMGC is a strategic initiative which will enable to improve housing loan volumes to non-salaried people.
  • Under this product, applicant could avail higher finance based on risk grade of the borrower, by opting for IMGC default guarantee cover.
  • SBI further said the MoU with IMGC would pave the way for the bank to introduce many more products in the mortgage guarantee backed home loan segment.

About IMGC

  • India Mortgage Guarantee Corporation Private Limited provides mortgage guarantee backed home loans for home buyers.
  • It helps home buyers with home loan accessibility, longer loan tenures, and higher loan amounts.
  • It is India’s first Mortgage Guarantee Company
  • IMGC is a joint venture between National Housing Bank, Genworth Inc International Finance Corporation and Asian Development Bank.
  • It provides mortgage default guarantee to the lending Institutions in India.

About SBI

  • State Bank of India (SBI) is an Indian multinational, public sector banking and financial services company.
  • It is a government-owned corporation
  • SBI is one of the 50 largest banks in the world
  • As on December 31, 2017, SBI had a deposit base of Rs. 26.51 lakh crore. It has 32.16 per cent market share in home loans and 35.54 per cent market share in auto loan

- Published/Last Modified on: August 3, 2018

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