Home First Finance Company India Ltd. (HomeFirst) has entered into a strategic co-lending partnership with Central Bank of India to offer home loans to customers at competitive interest rates. The partnership leverages the strengths of both entities to provide a seamless experience to retail home loan customers in the priority sector. This will enable HomeFirst to offer home loan products to a wider segment of customers in the geographies that it operates.

Under this partnership, HomeFirst will originate loans as per the agreed credit policy of Central Bank of India in line with the provisions of RBI's Co-Lending Model. HomeFirst will retain minimum 20% of the loan on its book while 80% will be on the book of Central Bank of India. HomeFirst will act as a servicing agent for the loan accounts sourced under this partnership throughout the life cycle of the loan.

The partnership is an outcome of the co-lending framework laid down by Reserve Bank of India (RBI) which provides a collaboration model to benefit from the low-cost funding model of a bank and the cost-efficient sourcing and servicing capabilities of a non-bank.