Godrej Capital Limited, the financial services arm of the Godrej Group, has launched a ‘loan against property’ offering, LAP 25, for small and medium enterprises (SMEs) with a tenure of up to 25 years.

Godrej Capital, a subsidiary of Godrej Industries, is the holding company for Godrej Housing Finance and Godrej Finance.

Through a ‘design your EMI’ approach, Godrej Capital is looking to address the issue of seasonal and uneven cash flows that is characteristic to SMEs in India. For example, eligible customers can choose to pay interest only for the first three years of the loan, thereby enabling efficient use of the fund. It will soon offer the option of paying quarterly and bi-monthly (once in two months) instalments.

Manish Shah, MD and CEO, Godrej Capital, said: “Our approach has been to address the credit supply gap through fair, fast, and flexible offerings. As we expand, the introduction of LAP 25, an industry-first offering, further highlights our focus on flexibility to empower our consumer base”. 

LAP 25 will also be available at the company’s soon-to-be-launched subsidiaries in Chennai, Indore, Jaipur, Chandigarh, Surat, and Hyderabad, besides the existing ones in Mumbai, Pune, Delhi NCR, Ahmedabad, and Bengaluru. 

Godrej Capital aims to grow its balance sheet to ₹6,000 crore by fiscal 2022-23 and ₹30,000 crore by end-March 2026.