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Bajaj Finance said on Wednesday that its board of directors has approved the setting up of a housing finance company (HFC) as a wholly-owned subsidiary.
An application for HFC licence will be made to the National Housing Bank (NHB), the company said in a statement.
Rajeev Jain, CEO Bajaj Finance, said, “The company believes that doing housing loans business through a housing finance company would be advantageous. The advantages include additional avenues of borrowings, lower risk weights for certain classes of loans and easier legal repossession, among others.”
Bajaj Finance, the lending arm of Bajaj Finserv, currently offers home loans to, among others, small and medium enterprises, salaried customers, and against property to SME customers. The mortgage business forms about 40 per cent of the company’s loan book.
The shares of Bajaj Finance ended 1.65 per cent lower at ₹2,567 on the Bombay Stock Exchange.
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