Mumbai, March 5 : PNB Housing Finance and Yes Bank on Friday said that they have entered into a strategic co-lending agreement to offer retail loans to home-buyers at competitive interest rates. A PNB Housing statement said that both the financial institutions will synergise their capabilities to provide an efficient and seamless experience to existing and new retail home loan customers. PNB Housing and Yes Bank will jointly do due diligence and co-originate the loan at an agreed ratio. PNB Housing will service the customers through the entire loan lifecycle, including sourcing, documentation and collection with an appropriate information sharing arrangement with Yes Bank. In 2020, RBI allowed the co-origination of HFCs with banks to enable non-banking finance companies and other banking institutions to provide mutually beneficial risk assessment services. The revised co-lending model, introduced in November 2020, gives lenders greater flexibility in terms of offering higher credit for the unserved and underserved segments of the population. Rajan Suri, Business Head for Retail at PNB Housing Finance said: "The digital transformation has opened up untapped opportunities in the retail home loan space. We have seen a steady demand among the working class, especially millennials, who are keen to realise their dreams of owning a home early in their careers." "I am confident that our strategic co-lending partnership with Yes Bank will enable us to accelerate our business growth and add significant value to customer relationship and experience," Suri said. Rajan Pental, Global Head of Retail Banking at Yes Bank said that the partnership provides ease of loan sanctions at borrower's convenience through digital lending platforms, thereby enabling home-buyers to fulfil their dreams and aspirations. /IANS