Question: What is the function of the India Mortgage Guarantee Corporation?
(a) To provide finance to credit institutions
(b) To provide the default guarantee of mortgage to credit institutions
(c) Monitoring of mortgage capital of banks
(d) None of the above
Answer: (b)
Related Facts:
- On March 19th, 2018 SBI, India’s largest lender State Bank of India and IMGC (India Mortgage Guarantee Corporation) entered into an agreement to offer mortgage guarantee scheme for potential non-salaried and self-employed loan customers.
- This offer will help in increasing the entitlement of home loan to 15 percent by regulatory norms.
- With the growing demand of the affordable housing segment, the purpose of this product is to provide home finance on the selected conditions by the target audience.
- SBI will provide mortgage-backed home loan products to the non-salaried class.
- Under this product, the applicant can avail the benefit of high finance on the basis of the risk weight of the borrowers for the default guarantee cover of the India Mortgage Guarantee Corporation.
- India Mortgage Guarantee Corporation is a joint venture between National Housing Bank, Genworth Insurance International Finance Limited and Asian Development Bank.
- It provides defensive guarantee of bond to credit institutions in India.