India Mortgage Guarantee Corporation has entered into a strategic partnership with PNB Housing Finance Ltd to expand access to affordable home loans, marking a significant step toward strengthening responsible lending practices in India’s housing finance ecosystem.
PNB Housing Finance Ltd, one of India’s largest housing finance companies, announced its collaboration with India Mortgage Guarantee Corporation (IMGC), the country’s first mortgage guarantee company.
Through this partnership, PNB Housing aims to offer affordable home loan solutions backed by India Mortgage Guarantee Corporation, enabling aspiring homeowners – particularly first-time buyers – to achieve their homeownership goals.
As part of the collaboration, India Mortgage Guarantee Corporation will provide Mortgage Guarantee (MG) solutions supported by a First Loss Default Guarantee (FLDG) structure for PNB Housing Finance customers.
This framework enhances borrower eligibility while ensuring prudent risk management and portfolio resilience. By leveraging the mortgage guarantee framework from India Mortgage Guarantee Corporation, lenders can extend credit responsibly while maintaining strong portfolio quality.
The partnership is expected to significantly widen access to home financing for underserved segments. By integrating India Mortgage Guarantee Corporation’s credit protection mechanisms, PNB Housing Finance can mitigate lending risks while expanding its reach in the affordable housing market.
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Ajai Shukla, MD & CEO, PNB Housing Finance, said, “At PNB Housing Finance, our vision is to make homeownership more accessible, inclusive and sustainable for home buyers across India. Our partnership with IMGC marks a significant step in strengthening this commitment, particularly to deserving borrowers who may not otherwise qualify for traditional financing options.
By combining our underwriting expertise and distribution footprint with IMGC’s robust guarantee frameworks, we can confidently expand our affordable housing portfolio, and contribute strongly to nation building.”
Highlighting the broader market opportunity, Mahesh Misra, MD & CEO, India Mortgage Guarantee Corporation, added, “India’s housing finance market continues to present a significant opportunity, particularly as mortgage penetration remains relatively low compared with global benchmarks.
At IMGC, we have facilitated mortgage guarantees on home loans exceeding ₹44,000 crores, supporting over 1,70,000 households across more than 400 locations in India. Our partnership with PNB Housing Finance represents an important step in expanding the role of mortgage guarantees as a risk-sharing framework that enables lenders to responsibly extend housing finance while maintaining strong credit discipline.”
The partnership between PNB Housing Finance and India Mortgage Guarantee Corporation is expected to play a crucial role in advancing financial inclusion by enabling wider access to affordable housing finance across India.
