Key Benefits
- Reduced Maturity mismatch – Improved ALM.
- Reduced Market risk – Fixed rate Loans.
- Long-term/Stable source of funding.
- Reduced Credit Risk- Improved Affordability of Consumer.
- Borrowings from PMRC are exempted from maintenance/calculation of CRR/SLR
- Exemption in general provisioning for portfolio refinancing loans from PMRC.
- Reduced Risk Weightage for PMRC refinanced mortgages.
- Exemption from real estate lending limits – more exposure for Housing Finance.
- PMRC’s funding will increase housing finance portfolio of banks thereby creating long term funding source.
- Banks can cross sell different products to new customers to increase profitability.
- Leveraging existing portfolio for additional lending.
- Prefinance option available to generate mortgage loan portfolio.
- Specialized products for low and middle income segment with price incentive.
- Mortgage loans portfolios of Pensioners and Govt. employees can be refinanced.
- PMRC assistance for capacity building and product innovation.
