The company will provide its housing finance offerings namely home loans, loans against property and small ticket construction finance in these markets.
Piramal Capital & Housing Finance Limited (PCHFL), the wholly owned subsidiary of Piramal Enterprises Limited, today announced the expansion of its housing finance operations in Gujarat, with the launch of two new branches – Vadodara and Surat. The company will provide its housing finance offerings namely home loans, loans against property and small ticket construction finance in these markets.
In October 2018, PCHFL launched its retail operations in Gujarat with Ahmedabad branch and in a short span of time, it has sanctioned over INR 75 crores of home loans. PCHFL has had a long standing presence in Gujarat through its wholesale real estate funding business where it provides end-to-end real estate financing solutions across the entire capital stack such as structured debt, construction finance, flexi lease rental discounting, etc. Building on its strong relationships with developer partners in Ahmedabad, PCHFL has sanctioned and disbursed INR 2,000 crores through its wholesale business.
Khushru Jijina, Managing Director, Piramal Capital & Housing Finance Ltd. said, “Piramal Capital & Housing Finance is delighted to launch its Vadodara and Surat offices, in addition to our presence in Ahmedabad. Gujarat, a dynamic and segmented real estate market, is significant to our growth plans. This launch is aligned to our strategy to expand our presence where there is a growing demand for real estate and home loans. Currently, housing finance business contributes ~10% to PCHFL’s overall loan book, which is expected to increase to 15-18% by March 2020.”
PCHFL has a focused strategy to expand its housing finance business that is a combination of multiple elements:
a. a unique business model – B2B2C – (business to developer to customer) which is a key differentiator;
b. existing robust relationships with developer partners combined with innovative offerings; and
c. a single platform that provides end-to-end financing solutions.
PCHFL has three innovative products in its portfolio that cater to the needs of the market and customers.
I. Superloans factor in future income potential whilst assessing the credit parameters for a retail loan to enable customer to purchase their ideal home. SUPERLOANS is designed to enable customers to buy their first home at a much younger age (28 years as opposed to the generally observed average age of 35 years of first-time home buyers)
II. Advantage is a product where in the initial years, the loan is serviced based on the combined income and after few years, the loan is serviced at a lower EMI based on the income of only one applicant for e.g. father and son
III. Bridge is a product for customers who wish to buy a new house but have to wait to sell their existing house. Bridge loan gives time to these customers to sell their existing property to the right buyer and covers the funding gap between purchase of new house and sale of existing house.
The housing finance business of PCHFL has presence in Mumbai, New Delhi, Pune, Bengaluru, Nashik, Ahmedabad, Hyderabad, Chennai and now in Vadodara and Surat. Since its inception, the overall housing finance loan book has reached ~INR 5,200 crores as on 31st March 2019. Going forward, in the next 6-9 months, the company plans to expand its presence in Jaipur, Nagpur, Navi Mumbai, Palava and Indore.