IMGC and the lender working in collaboration since last 4 years. The initial pilot phase was launched in 4 cities which has expanded to 100+ cities at present.
Mortgage guarantee loans comprise of over 10% in all locations. These loans are incremental volume for the lender (approximately INR 250 Cr per month).
The increase in business volumes can be attributed to the following benefits derived from Mortgage Guarantee product
Lender is working with IMGC for 1.5 years with Mortgage Guarantee policy embedded in their internal product to launch home loans for affordable segment.
The increase in business volumes can be attributed to the following benefits derived from Mortgage Guarantee product.
The lender has taken a mortgage guarantee on part of its pool. The pool backed by mortgage guarantee is a riskier pool on account of borrower profile and origination geographies.
The objective of getting the existing book guaranteed was to transfer the risk and cash flow management.
IMGC guaranteed two pools of PTC transactions worth 300 Crores, with the seller being a housing finance company and the investor being a large private sector bank. Two credit rating agencies rated the pool after considering [Reduced Cash Collateral on account of Mortgage Guarantee +Mortgage Guarantee]> High Cash Collateral
Benefits derived by the Housing Finance Company
Benefits derived by the Investor (Large Private Sector Bank)