The Godrej Group is foraying into the financial services business with Godrej Housing Finance (GHF), with the aim of building a sustainable retail franchise. The company aims to grow its balance sheet to Rs 10,000 crore over the next three years. The new company, GHF, will partner with developers, including its group company Godrej Properties. The group plans to infuse between Rs 1,000 and Rs 1,500-crore capital in company in the next three years.
Pirojsha Godrej, chairman, Godrej Housing Finance, said, “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.”
Godrej Housing finance will offer home loans across India starting with customers in Mumbai, National Capital Region (NCR), Pune and Bengaluru. The product offerings are guided by three pillars – flexibility, affordability and personalisation. Aiming at flexibility, the company will be enabling borrowers to customise the payment of their own contribution and easy monthly installments (EMI) schedule. The lender promises affordability by offering competitive pricing with interest rates starting at 6.69%. The newly launched company also offers personalisation by tailor-made loan offerings for customers.
Manish Shah, managing director (MD) and chief executive officer (CEO), Godrej Housing Finance, said, “We want to give customers a home loan that is customised to what’s important to them, basis their housing needs, financial capability and convenience.”
The company intends to focus on the mortgage business starting with home loans, followed shortly by loans against property (LAP). In the near future, the company will expand its product portfolio to offer business and personal loans, leveraging the group’s consumer and agri business ecosystems to build these verticals.