May 03, 2023
Axis Bank, India’s third largest private sector Bank and India Shelter Finance Corporation Ltd (IndiaShelter), a Gurgaon based Housing Finance Company, today announced a strategic partnership under the co-lending model. With this partnership, both lenders will be offering Secured MSME loans to middle and low-income segment borrowers based in the semi-urban regions.
This partnership will leverage the deep financial expertise of Axis Bank and the strong loan processing technology of IndiaShelter to assess the borrower’s credit profile and offer them loans at an optimal interest rate, ensuring a seamless banking experience. The partnership will empower Axis Bank and IndiaShelter to reach out to potential customers in the informal segment who are new to credit and are underserved by larger institutions.
Speaking on the collaboration, Mr. Munish Sharda, Group Executive & Head- Bharat Banking, Axis Bank said, “Our partnership with IndiaShelter is in alignment with the Bank’s Bharat Banking mission of extending our reach in the remote regions and providing financial services in a seamless digital manner. Through this partnership, we will strengthen our presence in the mortgages segment, and help the bank augment its priority sector lending portfolio. We are excited about the opportunity as our digital co-lending platform allows the partnership to scale-up fast and offer a superior customer experience.”
Commenting on the partnership with Axis Bank, Mr. Rupinder Singh, MD & CEO, of India Shelter Housing Finance, says, “IndiaShelter has been at the forefront of helping first-generation semi-urban families get access to credit. We have been working towards solving funding needs for customers with undocumented income who are largely under banked. With deep expertise developed over 12 years in underwriting the informal income segment loans for affordable homes and wide reach through its well-established Phygital Model, the partnership with Axis Bank will be an excellent opportunity for us to leap forward towards our goal of bringing financial inclusivity by penetrating deeper across the geographies and create sustainable growth having substantial societal impact.”