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Amid a spurt in demand for home loans, Godrej Group, on Tuesday, announced its foray into the financial services industry with the launch of Godrej Housing Finance.
“With Godrej Housing Finance (GHF), the group aims to build a long-term, sustainable retail financial services business in India, aiming for a balance sheet of about ₹10,000 crore in the next three years,” it said in a statement.
The company will start off with home loans in Mumbai, NCR, Pune and Bengaluru. GHF will partner with developers, including Godrej Properties.
It is offering competitive pricing with lowest interest rates starting at 6.69 per cent – it will look at disbursing at least ₹1,000 crore this fiscal. “The increasing formalisation of the real estate sector, combined with the dislocation in the residential real estate and housing finance markets, makes this a particularly interesting opportunity at the current moment,” said Pirojsha Godrej, Chairman, Godrej Housing Finance
The Godrej Group will infuse about ₹1,000 crore to ₹1,500 crore in the initial three to four years and the housing finance player, said Godrej, adding that it won’t be looking to raise capital for initial financing.
Mortgage business
The company plans to focus on the mortgage business starting with home loans, followed shortly by Loans Against Property, and will gradually expand its product portfolio to offer business and personal loans, leveraging the group’s consumer and agri business ecosystems to build these verticals.
“We will be focussed on the mass affluent – ₹30 lakh to ₹10 crore homes – with a strong focus on the mid segment of ₹30 lakh to ₹1 crore to ₹1.5 crore homes. It is likely to form the bulk of our business,” said Manish Shah, Managing Director and CEO, Godrej Housing Finance.
In an interaction with BusinessLine , he said the company is focussed on building the retail franchise, and will also look at loans against properties and opportunities in terms of access to the group’s ecosystem, whether it is supply chain or cash flow-based financing. “For the next three to five years, these are the businesses we will look at,” he said.
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