BRASILIA--Brazil's state-run Caixa Economica Federal savings and loan bank projects its credit for home loans will grow by around 19% in 2013 to 120 billion Brazilian reais ($58.5 billion), the bank said Wednesday.

The bank said lending for housing credit grew by 33.8% in 2012 to BRL101 billion. Caixa said it cut the cost of home financing by 21% in 2012, offering loans with terms between 30 and 35 years.

Bank officials, meanwhile, said they expected continued growth of home lending with new credit-processing operations inaugurated in the year.

"Caixa in 2013 will begin work as a credit processor," said vice-president government and housing, Jose Urbano Duarte. "Clients will receive information on their financing situation in real time, via Internet and cellphone, and can submit documents and information through these channels."

The credit-processing unit was created through a joint venture between Caixa's Caixapar investment arm, the bank's FUNCEF pension fund, and International Business Machines Corp. (IBM).

Brazil's government over the past year has encouraged greater lending through state-controlled banks including Caixa and Banco do Brasil (BBAS3.BR) to lower the cost of loans and continue credit expansion in the country.

Brazil's total credit operations among all banks rose by 16% in the 12 months through November to BRL2.3 trillion.

Write to Gerald Jeffris at gerald.jeffris@dowjones.com

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