home loans: IMCG partners with Muthoot Homefin for mortgage-backed home loans

India Mortgage Guarantee Corporation (IMGC) on Thursday announced its partnership with Muthoot Homefin (India) Limited (MHIL) to offer mortgage-backed home loan products to customers in the affordable housing segment. A mortgage guarantee will allow MHIL to sanction a higher loan amount (LTV ratio) to customers at lower interest rates, according to a joint statement.

The housing finance company currently offers loans starting at 6.5% to economically weaker sections under its Azad-i75 program for affordable housing.

Speaking on the partnership, IMGC CEO Mahesh Misra said, “The product was developed using a calibrated approach, and we are confident of steady scale. Muthoot has ambitious plans for the next fiscal year, and we are delighted to partner with them on this journey.”

IMGC is working to work with lenders to provide mortgage security coverage and promote early home ownership, the statement said.

With the growing demand for affordable and middle-income housing, Muthoot Homefin aims to leverage mortgage collateral as a risk mitigation tool, he added.

The combination with IMGC will help Muthoot Homefin deepen its penetration into existing markets across its 108 branches/locations, enabling home ownership in the affordable housing segment, said MHIL CEO Rajeev Khond.