Indiabulls Housing Finance (IBH) and mortgage lender HDFC Ltd have entered into a strategic co-lending partnership with HDFC Ltd to offer housing loans at competitive rates.

IBH will originate retail home loans as per jointly drawn up credit policy and retain 20 per cent of the loan in its books, and 80 per cent will be on HDFC books, Indiabulls Housing said in a regulatory filing on Wednesday.

IBH will service the loan account throughout the life cycle of the loan, it said.

The co-lending partnership with HDFC Ltd will act as a cornerstone to IBH's new balance-sheet light growth business model, Indiabulls Housing said.

HDFC Ltd is the market leader in the housing finance industry in India with assets under management of over Rs 5.52 lakh crore at December-end 2020.

It is a gold-standard financial services company and is rated at the highest long term rating of AAA by CRISIL, ICRA, and CARE Ratings.