Thursday 21 May 2009 - All stories compiled and edited by Bhaswati Das
With the home finance business registering a compounded annual growth rate over the past few years, the Tata Group is ready to re-enter the housing finance business. The new business will be part of the group's NBFC business under Tata Capital and will be operated through a wholly owned subsidiary, Tata Capital Housing Finance Limited (TCHFL). It has been registered with the National Housing Bank as a housing finance company (HFC) and is now permitted to commence business.
Incorporated with an authorised capital of Rs 100-crore of which Rs 10-crore has already been subscribed, TCHFL will focus on Tier I and Tier II cities. It plans to establish 35 outlets by the end of FY10.
Tata Capital already has a presence in retail finance with a products suite comprising auto loans, personal loans and property. “A separate subsidiary will help us consolidate and focus on our housing finance business. We intend to leverage the Tata name and the Tata Capital brand,” said Praveen Kadle, Managing Director, Tata Capital.
The firm will sanction loans between Rs 2-lakh and Rs 2-crore for up to 85 percent of a property’s value. The maximum duration of loan repayment will be 240 months while the minimum will be 12 months.
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