Debt Recovery Guru - Debt Collection India Portal, Latest Indian Credit Industry News , Jobs, Events, Directory

Sunday
Nov 19th
Text size
  • Increase font size
  • Default font size
  • Decrease font size
Home Best Practices India India’s first mortgage guarantee entity launched

India’s first mortgage guarantee entity launched

E-mail Print PDF
A joint venture spearheaded by National Housing Bank (NHB), US-based financial security company Genworth, the Asian Development Bank and the International Finance Corporation lead to the formation of India’s First Mortgage Guarantee Company.
 
NHB has 38 per cent stake in the venture, Genworth 36 per cent, while ADB and IFC have 13 per cent each.
 
The fund aims to offer credit risk coverage in the form of guarantees to housing finance companies and banks in case of borrowers defaulting. This would help mortgage lenders avoid piling bad debts in their books.
 
The initial paid-up capital is Rs 120 crore which may see an increased over time to support the new company’s growth.
 
“We have received the Foreign Investment Promotion Board’s approval and will be applying to the Reserve Bank of India for registration in a couple of days,” said R V Verma, chairman and managing director of NHB. IMGC will be a purely commercial venture.
 
The company will begin marketing operations and develop internal operational policies before it gets registered with RBI.
 
The company will have processes for approving lenders and housing loans for guarantee cover and help in maintaining the asset quality of lending institutions. 
 
IMGC is expected to focus on residential mortgage-backed securitisation and growth of the secondary mortgage market. 
 
Launch of IMGC will not only benefit banks and housing finance companies but also many new home loan borrowers.

 

 

Advertisement

Advertise on Debt Recovery Guru. Check out options by clicking here!

Advertisement

Advertise on Debt Recovery Guru. Check out options by clicking here!

Newsletter

Follow DRG

TwitterFacebookFeed

Polls

How is the Debt Recovery Industry's Reputation in India?
 

Advertisements