New Dehi, Mar 4 (IANS): LIC Housing Finance (LICHFL) said on Monday that it has partnered with India Mortgage Guarantee Corporation (IMGC) to offer home buyers enhanced loan eligibility and easy loans.

"This strategic tie-up will help the LICHFL accommodate more home loan borrowers and increase market penetration, besides combating NPAs (non-performing assets)," the company said.

Besides, LICHFL said under the new partnership, IMGC will provide it with mortgage guarantee which is a kind of financial product that compensates financial institutions for losses that may arise from a default on a mortgage loan.

"It will also help LICHFL accommodate more home loan buyers, improve eligibility criteria, extend repayment period and ease restrictions on profile of applicants, who face rejection related to work profile, work place and credit history, amongst other reasons, which may be unspecified by lending institutions."

Speaking about the association, Vinay Sah, MD & CEO, LICHFL stated that "LICHF's partnership with IMGC will help add more home loan borrowers and mitigate risk across lending categories".