Muthoot enters housing finance

The Muthoot Pappachan Group on Thursday announced its entry into the housing finance segment in Kerala targeting the lower middle and lower income group through its newly-formed company, Muthoot Housing Finance Company Limited.

It plans to offer housing loans through branches in Ernakulam, Kottayam, Thrissur and Kozhikode districts. The company aims to build a loan book size of over Rs 250 crore over the period of next five years in Kerala alone.

Muthoot Housing will mainly cater to the finance needs of customers whose income ranges from Rs 10,000 to Rs 30,000 per month and will offer loans ranging from Rs 3 lakh to 15 lakh, up-to 80 per cent of the property value. The loan repayment period will be up to 15 years. The company will offer loans for the purchase of ready property, under-construction house/flats, for self construction and for home extension, said Thomas Muthoot, executive director of the group while launching the company.

The company is targeting the approval and disbursement of loan in seven working days.

Over a period of five years, Muthoot Housing is targeting to lend Rs 1,000 crore to housing finance customers nationally.

Muthoot Housing is headquartered in Mumbai with operations in Maharashtra, Gujarat, Madhya Pradesh, Tamil Nadu, Karnataka and Uttar Pradesh. It is a subsidiary of the group’s flagship company, Muthoot Fincorp Limited and is registered with the National Housing Bank.