Current Affairs - Banking - Discussion

HDFC Bank collaborated with IMGC (India Mortgage Guarantee Corporation) for a mortgage guarantee-backed home loan. Mortgage guarantee is a financial product which compensates lending institutions for the losses that may occur when a home owner defaults on a mortgage loan. In 'mortgage guarantee', the risk of the home loan gets transmuted from the bank/FIs (financial institution) to the mortgage guarantee company. This collaboration will help HDFC provide more loan to a home loan customer on an improved eligibility. The main objective of the collaboration is to address middle age-salaried customers, self employed customers and young salaried customers.