Central Bank of India enters into Co-Lending Partnership with Piramal Capital and Housing Finance Ltd

State-owned PSB Central Bank of India has entered into a strategic Co-Lending Partnership with Piramal Capital & Housing Finance Limited to offer MSME-LAP and Home Loans at competitive rates, subject to compliance with the applicable law(s) including the applicable guidelines issued by Reserve Bank of India (RBI).

The participation by both the entities in this Co-Lending arrangement will result in greater expansion of portfolio by Central Bank of India and M/s. Piramal Capital & Housing Finance Limited. M/s. Piramal Capital & Housing Finance Limited is a Non-Deposit Taking Housing Finance Company, registered with National Housing Bank (NHB), the bank stated.

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Piramal Capital & Housing Finance Limited (referred to as Piramal Finance), a wholly owned subsidiary of Piramal Enterprises Limited (flagship company of the Piramal Group), is a housing finance company engaged in retail and wholesale lending, catering to the diverse financial needs of the underserved and unserved.

It has over 1.3 million active customers and a presence in 26 states with a network of 501 conventional branches as of 30th June 2024. It offers multiple products, including home loans, loans against property, used car loans, and small business loans in Tier I, II, and III cities.

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The AUM of the company is Rs 54273 Cr as of 31.03.2024. Under the arrangement, Piramal Capital & Housing Finance Limited will originate and process Loan proposals under MSME and Retail Sectors as per jointly formulated credit parameters and eligibility criteria and the Central Bank of India will take into its books 80% of the MSME_LAP and Home Loans under mutually agreed terms.

Piramal Capital & Housing Finance Limited will service the loan accounts throughout the life cycle of the loans. The Co-Lending arrangement is expected to help both the entities to offer convenient experience and customer delight to their customers as well as expand their reach across India.

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