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.

UBI is one of the oldest and largest public sector banks with a total deposit base of more than Rs 9.14 lakh crores and an advance book (AUM) of Rs 6.35 lakh crores as of September 2021.

Speaking on the development, Home First’s MD and CEO, Manoj Vishwanathan said that the partnership will allow the company to provide faster house finance to potential buyers with ease and transparency. He added that using UBI’s deposit led franchise with HomeFirst’s technology-led distribution is going to enable them to offer efficient home loan solutions to a wider base of customers.

Home First is a technology-driven housing finance company focused on first time home buyers from the lower- and middle-income group. The company recorded a surge of over 200 per cent in its profit for Q2 FY 22 compared t the number of Q2 number of the previous financial year. From Rs14.33 crore in Q2 FY21, Home First’s net profit jumped to Rs 44.87 crore in Q2FY22. The company’s total income recorded a 34.3 per cent jump YoY and moved to Rs 146.16 crore during the quarter.

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