In October 2021, which of the following banks has entered into a strategic co-lending partnership with IIFL Home Finance Ltd?

  1. State Bank Of India
  2. Central Bank of India
  3. Punjab National Bank
  4. Union Bank of India

Answer (Detailed Solution Below)

Option 2 : Central Bank of India
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Detailed Solution

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The correct answer is Central Bank of India.

Key Points

  • Central Bank of India has entered into a strategic co-lending partnership with IIFL Home Finance Ltd.
  • It will offer SME LAP (loans against property) loan products under priority sector to MSME borrowers.
  • Under this arrangement, lIFL Home Finance Ltd. will originate and process loans as per jointly formulated credit parameters and eligibility criteria.

Important Points

  • ​Central Bank of India will take into its book 80% of the SME LAP Loans under mutually agreed terms.
  • IIFL Home Finance will service the loan account throughout the cycle of the loan.
  • IIFL Home Finance Ltd is an RBI regulated non-banking finance company with a pan India presence and has a track record of customer acquisition.
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