India Post Payments Bank (IPPB) and HDFC have entered into a strategic alliance to offer home loans to nearly 4.7 crore customers of the payments bank.

Leveraging its country-wide network of 650 branches and over 1,36,000 banking access points (post offices), IPPB aims to make HDFC’s home loan products and its expertise available to its customers across India, HDFC said in a statement.

A memorandum of understanding (MoU) on the strategic alliance was signed between IPPB and HDFC Ltd on Monday.

“The partnership aims to facilitate HDFC’s home loans to customers, especially in unbanked and underserved areas with many of them having little or no access to finance, to fulfill their dream of owning a home. IPPB will offer housing loans through nearly 190,000 banking service providers (Postmen and Gramin Dak Sevaks),” it said.

According to the MoU, credit, technical and legal appraisals, processing and disbursement for all home loans will be handled by HDFC, while IPPB will be the responsible for the sourcing of loans, it said.

Union Bank

Union Bank on Tuesday said it has reduced its home loan rates with the minimum rate of 6.40 per cent.

The reduced rate will be effective from October 27.

The new rates will be applicable to customers applying for new loans or those who wish to transfer their existing loans, including balance transfers.