Housing Finance Firm Home First Ties Up with Union Bank of India for Home Loans; Details Here

The Union Bank of India (UBI) has entered into a strategic partnership with housing finance company Home First to offer home loans to customers at a competitive interest rate. Making the announcement in a press release on Friday, Home First said that the partnership is going to help the company in expanding its existential geographical base while continuing to leverage its technology-led customer approach. The partnership is aimed to enable both entities to provide a seamless experience to retail home loan customers.

The tie-up between Home First and UBI is an outcome of the Reserve Bank of India’s co-lending framework that provides a collaboration model to benefit from a bank’s low-cost finance model and the non-banking entity’s cost-effective sourcing capabilities.

Under the tie-up’s provision, Home First will generate loans as per UBI’s agreed credit policy in line with RBI’s co-lending provision. The housing finance company will retain a maximum of 20 per cent of the loan in its book while the remaining 80 per cent will be recorded on UBI’s book. Home First will act as a service agent for the loan accounts sourced under the partnership during the loan’s life cycle.