PNB Housing-IMGC Tie-Up Aims To Widen Affordable Home Loan Reach

PNB Housing Finance has tied up with IMGC to widen affordable home loan access as smaller-ticket borrowers lose share in India’s growing mortgage market.

PNB Housing Finance announced on March 17, 2026 that it has partnered with India Mortgage Guarantee Corporation (IMGC) to expand access to affordable home loans, especially for first-time borrowers. 

Reports by The Week, Rediff Money and PropNewsTime said the arrangement will allow PNB Housing to use IMGC’s mortgage guarantee-backed solutions, including a First Loss Default Guarantee structure for the affordable segment. The tie-up is aimed at borrowers who may not always fit conventional credit filters but remain part of the formal housing demand pipeline.

How The Partnership Fits The Market Story?
 

The official IMGC Annual Report 2024-25, published in June 2025, said India’s home loan market reached ₹40.6 lakh crore in FY25, up 12%. But the share of loans below ₹30 lakh slipped from 51% in March 2022 to 42% in March 2025, showing pressure on the affordable-ticket segment.
 

Against that backdrop, PNB Housing’s own affordable book has grown sharply. In its Annual Report for FY25, filed on July 28, 2025, the company said its Roshni business scaled from ₹1,790 crore in March 2024 to ₹5,070 crore in March 2025, a 183% jump. 

It also expanded to 200 branches across 15 states and 130+ districts. The same disclosure said 41% of the affordable portfolio came from self-employed borrowers and about 30% from informal-income customers.

What Happened Before This Deal?

The groundwork was visible earlier in PNB Housing’s FY25 disclosures. The company said the affordable segment crossed ₹5,000 crore within 27 months, while Affordable and Emerging Markets together contributed 26% of retail loan assets, up from 21% a year earlier. IMGC, on its official platform, said it has supported 1,50,000+ households, issued guarantees of ₹35,000+ crore, and built presence across 400+ locations.

A related affordability angle also appeared in a LoansJagat report published on February 4, 2026, which said PMAY allocation rose in Budget 2026, but broader home-loan relief did not fully meet industry expectations. That kept focus on lender-side risk sharing and credit enhancement.

What Stakeholders Said?

PNB Housing MD and CEO Ajai Shukla said the tie-up is intended to make homeownership more accessible and inclusive for borrowers who may fall outside traditional underwriting filters. 
 

IMGC MD and CEO Mahesh Misra said mortgage guarantees can expand housing finance responsibly while preserving credit discipline. Those remarks were reported on March 17, 2026. M

Conclusion

This tie-up comes at a time when mortgage growth is rising but smaller-ticket borrowers are losing share. If execution stays tight, the partnership could widen formal credit access without diluting underwriting.