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India Home Loans Expand for Underserved
21 Apr
Summary
- IMGC and Bajaj Housing Finance partner for affordable loans.
- Mortgage guarantees aim to reach excluded first-time buyers.
- Housing credit penetration in India remains significantly low.
India Mortgage Guarantee Corporation (IMGC) has entered into a strategic partnership with Bajaj Housing Finance Ltd. to enhance access to affordable home loans for underserved segments of the Indian population. This initiative is particularly focused on assisting first-time homebuyers who may have limited credit histories or irregular income streams, thus often being excluded from formal credit channels.
The collaboration integrates IMGC's mortgage guarantee capabilities with Bajaj Housing Finance's widespread distribution network. This allows Bajaj Housing Finance to utilize mortgage guarantee-backed solutions, including its Sambhav Loans, to extend credit to customers in the affordable housing sector while adhering to strict risk management protocols.
Mahesh Misra, MD and CEO of IMGC, highlighted the significance of mortgage guarantees in enabling lenders to extend credit more confidently and responsibly. He noted that with India's mortgage penetration at approximately 11-12% of GDP, substantially lower than in developed markets, risk-sharing mechanisms are crucial for scaling responsible lending and developing a more inclusive housing finance ecosystem.
As of February 2026, India's outstanding housing credit was around ₹43 trillion. The partnership aims to bolster IMGC's presence in the affordable housing market and contribute to the growth of housing finance within the country.
