The India Mortgage Guarantee Corporation (IMGC) has partnered with Bajaj Housing Finance Ltd (BHFL) to expand access to home loans for underserved and first-time homebuyers in India.
Key Objective of the Partnership
The collaboration aims to:
- Improve financial inclusion in housing finance
- Support borrowers with informal income
- Enable access for individuals with limited or no credit history
Under this partnership, BHFL will use IMGC’s mortgage guarantee-backed solutions to lend with greater confidence while managing risk.
Focus on ‘Sambhav Loans’
A key highlight of the tie-up is:
- IMGC will provide mortgage guarantees for BHFL’s Sambhav Loans
These loans are specifically designed for:
- Customers with informal income sources
- Individuals lacking formal credit records
This initiative addresses a major gap in India’s lending ecosystem, where many potential borrowers are excluded from formal credit channels.
How Mortgage Guarantee Helps
Mortgage guarantees:
- Reduce credit risk for lenders
- Encourage lending to high-potential but underserved segments
- Ensure responsible and sustainable credit expansion
This risk-sharing mechanism allows lenders to extend loans while maintaining financial stability.
Industry Context
According to IMGC:
- India’s total housing credit: ₹43 lakh crore (Feb 2026)
- Mortgage penetration: ~11–12% of GDP
In comparison, mortgage penetration in developed economies exceeds 50%, indicating a huge growth opportunity in India’s housing finance sector.
Significance of the Partnership
- Expands home ownership opportunities
- Strengthens last-mile lending capabilities
- Promotes inclusive economic growth
- Bridges the gap between formal finance and informal borrowers
Conclusion
The IMGC–Bajaj Housing Finance partnership marks an important step toward inclusive housing finance in India. By combining risk protection with strong lending networks, the initiative is expected to unlock opportunities for millions of aspiring homeowners and contribute to the growth of the housing sector.