Bajaj Housing Finance has partnered with the India Mortgage Guarantee Corporation (IMGC) to improve access to affordable home loans through mortgage guarantees, specifically targeting underserved and first-time homebuyers. IMGC is India’s first mortgage guarantee company.
This collaboration combines IMGC’s expertise in credit risk protection with Bajaj Housing Finance Limited’s (BHFL) distribution and last-mile lending capabilities. Their goal is to extend formal housing finance to borrowers who are often excluded due to limited credit histories or informal income profiles.
Credit gap in India’s affordable housing sector
India’s affordable housing sector continues to face a significant credit gap, particularly for self-employed individuals and informal workers. Through this partnership, Bajaj Housing Finance will utilize mortgage guarantee-backed solutions to broaden access to home loans.
This includes their Sambhav Loans, which are designed for customers with informal income profiles or limited credit history while ensuring the risk discipline that is essential for responsible lending.
This partnership will enable IMGC to enhance its presence in the affordable housing segment and contribute to developing a more inclusive housing finance ecosystem in India, bridging the substantial housing credit gap. Mahesh Misra, Managing Director and CEO of IMGC, stated that the partnership with Bajaj Housing Finance represents a significant step toward expanding access to housing finance for underserved segments.
“Mortgage guarantees play a crucial role in enabling lenders to extend credit confidently while maintaining strong risk discipline. With mortgage penetration in India still relatively low compared to global benchmarks, there is a significant opportunity for scaling responsible lending. Risk-sharing solutions like mortgage guarantees are critical for unlocking this potential responsibly,” Misra noted.
As of February 2026, India’s total outstanding housing credit stood at Rs 43 trillion, yet mortgage penetration remains low at about 11-12% of GDP, compared to over 50% in several developed markets.
