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 bank access points, IPPB will make LIC Housing Finance’s home loan products accessible to its clients across India, a statement released by the Ministry of Communications.
Under the pact signed by the two entities, the credit acceptance, processing and disbursement of all housing loans will be handled by LIC Housing Finance, with IPPB being responsible for the sourcing.
The alliance with LIC Housing Finance is part of IPPB’s strategy to expand its range of products and services and meet the banking and financial needs of diverse clients, especially non-banking and underserved clients, across the country.
Currently, IPPB distributes various non-life and life insurance policies through partnerships with leading insurance companies and credit products is a natural extension for last mile customers.
LIC Housing Finance offers home loans from 6.66 percent for loans up to Rs 50 lakh for salaried workers. The interest rate offered is tied to the borrower’s creditworthiness, as evidenced by their CIBIL scores.