India Post Payments Bank and LIC Housing partner to sell home loans

According to a statement issued on Tuesday, India Post Payments Bank (IPPB) has partnered with LIC Housing Financing to market the latter’s housing finance products to its 4.5 crore clients.

According to the announcement, IPPB would make LIC Housing Finance Ltd’s (LICHFL) home loan products available to its clients across India through its robust and wide network of 650 branches and more than 136,000 banking access points.

LICHFL will handle credit underwriting, processing, and disbursement for all house loans under the strategic partnership, while IPPB will source the loans.

The partnership with LICHFL is part of IPPB’s goal to broaden its product and service offerings, as well as to meet the banking and financial requirements of various clients across the country, particularly the unbanked and underserved.

Through agreements with insurance firms, IPPB already offers general and life insurance products. According to the statement, credit products are a natural extension for clients at the final mile.

IPPB employs over 200,000 postal personnel (postmen and Gramin Dak Sevaks) who are equipped with micro ATMs and biometric devices for doorstep banking. This will play a key part in LICHFL’s home finance offerings.

“Easy access to financing for home purchases is a critical requirement for attaining equitable growth. The collaboration with LICHFL is a key step forward in IPPB’s mission to become one of the largest platforms for our clients to get credit products to suit a variety of demands,” According to J Venkatramu, MD & CEO of India Post Payments Bank.

LIC Housing Finance MD & CEO Y Viswanatha Gowd stated that the strategic MoU with IPPB will assist the firm in deepening its market penetration.

“It will allow us to expand LICHFL’s home loan product reach into hitherto unexplored areas across the country. We consider this strategic collaboration as a key step that will support our long-term company growth and enhance our market share, with an unrivalled presence of post offices,” he stated.

For salaried persons, LIC Housing Finance provides house loans beginning at 6.66% for loans up to Rs 50 lakh.