Housing finance companies are betting big on self-employed and non-salaried customers, especially in the affordable housing segment.

On Monday, Shriram Housing Finance launched festive offers for non-salaried home loan borrowers. The company has slashed processing fees by 0.50 per cent and offers a 0.50 per cent reduction in interest rate for online home loan applications.

“Shriram Housing Finance caters to a mix of the affordable and mid-market home loan segments, and a majority of our customers are non-salaried, where we are witnessing renewed demand for home buying,” said Ravi Subramanian, MD and CEO, Shriram Housing Finance. The appetite for home buying is more than what it was before the pandemic in Tier II and III cities, he added.

Are festive home loan offers worth it?

Typically, banks tend to prefer salaried customers for home loan disbursals.

Arvind Hali, Managing Director and CEO, Motilal Oswal Home Finance, said that the country has a significant number of self-employed persons, with nearly 99 per cent of them in the unorganised sector. “There is a huge potential for housing demand in this segment,” he said, observing that many now prefer to own and stay in independent homes.

“Over the next two years, our book would be 60-65 per cent in favour of self-employed customers,” he said, adding that the risk-adjusted returns can be more rewarding in the segment.

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At present, the company’s book is equally balanced between salaried and self-employed customers.

Motilal Oswal Home Finance has a book size of about ₹3,600 crore and seeks to grow by 30-35 per cent in the next few years.

Agrim Housing Finance, too, is focusing on the self-employed segment, with 85 per cent of its customers being micro-business owners and the rest salaried.

“Over the coming years, we will have 95 per cent of our loan book dedicated to the informal and self-employed,” said Malcolm Athaide, CEO and co-founder, Agrim HFC.