Tata Finance Forays Into Housing Finance Business

Tata Finance, the financial services arm of the Tata group, has made a foray into housing finance business through its newly formed company, Tata Homefinance Ltd.

Tata Finance will hold 51 per cent stake in the new company, with another 9 per cent being

held by Tata group companies. The balance 40 per cent will be offered to multilateral funding agencies.

The group is also in the process of identifying an overseas joint venture partner to whom it would offload some equity stake of the balance 40 per cent.

Tata Homefinance will offer products such as home loan, home extension loan, home improvement loan, loan against home and line of credit.

 

The company also plans to offer products like corporate loans, builder loan, loan to professionals, loans to NRIs, shortly.

According to a statement issued by Tata Services Ltd, "It is the intention of Tata Homefinance not to undercut the market. The strategy will be to price the products competitively and in tune with the market. The initial standard individual home loan product is being introduced at an interest rate of 13 per cent per annum. The focus will be on adopting top-class procedures and best practices in order to ensure a high degree of customer satisfaction and transparency in operations."

Tata Homefinance has already kicked off operations in Pune from May 6, where it will be headquartered. It proposes to start operations at over 20 centres across the country over the next 6 to 8 months.

"With the launch of the housing finance company, Tata Finance has come a full circle in its quest to make Tata Finance a one-stop shop providing the customer with an entire gamut of products under one roof, either directly or through its subsidiaries," said the statement issued by the company.

"Home finance is a product which will give wide range of current and future products such as vehicle finance, insurance, consumer durable finance, mutual funds, foreign exchange and credit card," it added.