Godrej group enters housing finance, eyes 40,000 customer base in three yrs

The group plans to infuse Rs 1,500 crore in next 3-4 years and borrow subsequently at competitive rates

The Godrej Group today announced its foray into the financial services space with a housing Finance company.

Godrej Housing Finance (GFH) is aiming to achieve a balance sheet of Rs 10,000 crore within the next three years and a customer base of 40,000 borrowers.

The group plans to infuse about Rs 1,500 crore in the next 3-4 years and borrow subsequently at competitive rates, said Pirojsha Godrej, chairman of Godrej Properties and Godrej Housing Finance.

Godrej Housing finance will offer fast and flexible home loans across the country starting with customers in Mumbai, NCR, Pune and Bengaluru. GHF will partner with developers including Godrej Properties to expand its operations 

Godrej Housing Finance's home loan rates will start at 6.69 per cent and customers will get to know in 15 minutes about their eligibility and terms of the loans.

Godrej Housing Finance intends to focus on the mortgage business starting with home loans, followed shortly by Loans Against Property. 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, a release from the group said.

"Our strong brand and access to low cost business will help us build the business. Banks have edge over us in certain areas but we also have edge over them due to our customer insights, " Godrej said.

Manish Shah, Managing Director and CEO, Godrej Housing Finance said that builder loans won't be a focused area for the company initially.