Thursday, January 10, 2013

Muthoot Pappachan Group forays into housing finance, to target low-income group



Targeting the lower and middle income group the Muthoot Pappachan Group has forayed into the housing finance segment in Kerala.
Considering the need for housing loans in the State and particularly in the lower income segment, the company aims to build a loan book size of over Rs 250 crore over the next five years.
Thomas Muthoot Executive Director Muthoot Pappachan Group told presspersons here on Wednesday that the housing loans would be offered through branches in Kochi, Kottayam, Thrissur and Kozhikode.
“We see great need and immense scope in the home loan market, especially in the low income segment. The idea is to be a facilitator to every Indian’s dream of owning a house,” he said.
People in the lower middle to lower income group, especially in the informal segment, face difficulties in procuring housing loans as they do not have any income proof. The aim is to reach out to this informal segment through the company’s vast network, he added.
Maneesh Srivastava, CEO, Muthoot Housing Finance Company Ltd said the company would mainly cater to the housing finance needs of customers whose income ranges from Rs 10,000 to Rs 30,000 each month and would offer loans ranging from Rs 3 lakh to 15 lakh, up to 80 per cent of the property value.
The loan repayment period would be up to 15 years and loans would be offered for the purchase of ready property, under-construction houses/ flats, for self construction on owned plots of land and for home extensions.
Over a period of five years, MHFCL aims to lend Rs 1,000 crore to housing finance customers nationally through calibrated growth in the target markets.

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