India Post Payments Bank and HDFC joined hands to offer home loans

India Post Payments Bank (IPPB) and HDFC bank has signed a memorandum of understanding (MoU) for offering home loans to about 4.7 crore customers of the payments bank.

Key Facts

  • IPPB, that leverages its country-wide network of 650 branches and more than 1,36,000 banking access points or Post offices, aims to make home loan products of HDFC available to its customers in India.
  • This partnership was signed with the aim of facilitating HDFC’s home loans in unbanked and underserved areas, where there is little or no access to finance. This in turn will help in fulfilling the dream of people of owning a home.
  • IPPB will offer housing loans through around 1,90,000 banking service providers like Postmen and Gramin Dak Sevaks.
  • Under the MoU; HDFC will be handling credit, technical & legal appraisals as well as processing & disbursement for all home loans while IPPB will be handling the sourcing of loans.

Significance of the tie-up

This tie-up will facilitate financial inclusion. Financial inclusion can only be achieved by enabling access to credit to a significant chunk of customers who do not have access to a bank or a financial institution to provide housing loans in their vicinity.

Aim of the tie-up

The partnership between HDFC & IPPB aims to make housing loans available and accessible, by means of a digitally enabled agent banking channel.

India Post Payments Bank (IPPB)

IPPB is specialised division of Indian Post working under the jurisdiction of Department of Post of Ministry of Communications. It was opened in 2018.


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