Shriram City Union Finance (SCUF) is set to enter the home loan finance space, with an initial paid-up capital of Rs 100 crore. The non-banking financial company, which secured the National Housing Bank's approval last week, plans to disburse home loans from mid-September through its wholly-owned subsidiary, Shriram Housing Finance Limited.
“Initially, we would set up 25 branches across the country and target middle-income customers, a segment in which the ticket size of loans should be around Rs 25 lakh,” Sujan Sinha, managing director and chief executive, Shriram Housing Finance Limited, told Business Standard.
Arun Duggal, chairman, SCUF, said the company aimed to leverage its existing customer base and tap the growth potential in the semi-urban and smaller centres. “We will definitely not compete with the bigger and established players. As a group, we have been catering to small and marginal players, and in the housing finance sector, too, we would be targeting the affordable housing space,” Duggal said.
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