Financial Daily from THE HINDU group of publications
Friday, Dec 13, 2002
Money & Banking
Loan scheme from Birla Home Finance
KOCHI, Dec. 12
BIRLA Home Finance Ltd, part of the Rs 4,500-crore K.K. Birla group, has launched its `Easy Home Loan Deposit Scheme', linking deposits with loan.
The scheme consists of two phases - saving phase and the loan phase - and is targeted at salaried persons, businessmen, traders, shopkeepers, and Government employees in the age group of 18-54.
The advantage of the scheme is that loans would be available at seven per cent with minimal documentation, speedy processing and doorstep service, Dr Klaus Baetz, Executive Director, said.
The scheme requires a member to save on a monthly or quarterly basis for a specified period of 3-5 years with five per cent compounded interest rate.
After the completion of the specified tenure, the member would be entitled for a housing loan at concessional rate of interest.
The company offers its members loan at seven per cent on annual reducing balance.
"The loan offered to the member would be double the value of savings plus interest," Dr Baetz added.
The company's vision is to become a global powerhouse in retail home finance by 2020 by achieving operational excellence through customer satisfaction by providing products at the lowest possible costs, according to him.
Mr Sanjay Khosla, General Manager, said that the new scheme had received tremendous response from Kochi with the company receiving around 125 applications on the day of introduction.
The target is to achieve 10,000 contracts from the State in the next fiscal.
As part of the marketing the products in rural and semi-urban areas, it has decided to open satellite offices in Kozhikode, Kottayam, Thiruvananthapuram in the coming fiscal.
Birla Home Finance began operations in the State in the year 2000 and its business volume has touched Rs 25 crore. Currently, it has offices in Thrissur and Palakkad.
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