Pune, Apr 21(BNP): India Mortgage Guarantee Corporation (IMGC), India’s first mortgage guarantee company, has announced a strategic partnership with Bajaj Housing Finance Limited (BHFL), India’s largest non-deposit taking HFC offering the full suite of mortgage products to expand responsible access to home loans for underserved and first-time homebuyers across India.
The collaboration combines IMGC’s expertise in credit risk protection with BHFL’s strong distribution and last-mile lending capabilities to extend formal housing finance to borrowers often excluded due to limited credit histories or informal income profiles.
India’s affordable housing segment continues to face a sizeable credit gap, particularly among self-employed individuals and informal workers. Through this partnership, Bajaj Housing Finance will leverage mortgage guarantee-backed solutions to expand access to home loans — including through Sambhav Loans, its affordable housing offering designed specifically for customers with informal income profiles or limited credit history — while maintaining the risk discipline that underpins responsible lending. The partnership will also enable IMGC to deepen its presence in the affordable housing space, supporting the development of a more inclusive housing finance ecosystem and helping bridge the significant housing credit gap across India.
Speaking on the partnership, Mr. Mahesh Misra, MD and CEO, IMGC, said:
“This partnership with Bajaj Housing Finance is a step forward in expanding access to housing finance for underserved segments. Mortgage guarantees play a key role in enabling lenders to extend credit with confidence, while maintaining strong risk discipline. With mortgage penetration in India still relatively low compared to global benchmarks, the opportunity to scale responsible lending remains significant, and risk-sharing solutions like mortgage guarantees are critical to unlocking it responsibly”
India’s total outstanding housing credit stood at ₹43 trillion as of February 2026, yet mortgage penetration remains low at around 11-12% of GDP compared with over 50% in several developed markets, highlighting the significant opportunity to deepen housing finance access across the country. EY estimates a 25% CAGR in India’s affordable housing segment between 2022 and 2027, with ten states including Maharashtra, Karnataka, and Uttar Pradesh accounting for over three-quarters of national demand.
