Jaipur: Piramal Capital & Housing Finance Limited (PCHFL), the wholly owned subsidiary of Piramal Enterprises Limited, announced its foray into Rajasthan with the launch of its housing finance business in Jaipur. The company will provide its housing finance offerings namely home loans, loans against property and small ticket construction finance for home buyers, including salaried and self-employed, in the Jaipur market.
With a network of 3,000+ channel partners, the housing finance business of PCHFL has 16 branches across 15 cities. Going forward, in the next 3-6 months, PCHFL plans to open its housing finance operations in Navi Mumbai and Palava.
Commenting on the launch, Mr. Khushru Jijina, Managing Director, Piramal Capital & Housing Finance Limited said, “We are delighted to announce the launch of our housing finance business in Jaipur, Rajasthan, marking our entry into a select non-metro market. This launch is aligned with our strategy to continue to diversify our loan book by expanding our housing finance presence and catering to the growing needs of real estate with innovative products & solutions. Currently, housing finance accounts for 11% (~INR 6100 crores) of the overall loan book as of June 2019 and is expected to increase to 16-18% by March 2020. We look forward to partnering with developers and channel partners in Rajasthan and other markets as we enter more cities in the coming months.”
PCHFL has three products in its portfolio that cater to the needs of the market and customers.
I.SUPERLOANS factor in future income potential whilst assessing the credit parameters for a retail loan to enable customer to purchase their ideal home. SUPERLOANS is designed to enable customers to buy their first home at a much younger age (28 years as opposed to the generally observed average age of 35 years of first-time home buyers).
II.AdvantAGE is a product where in the initial years, the loan is serviced based on the combined income and after few years, the loan is serviced at a lower EMI based on the income of only one applicant for e.g. father and son.
III.Bridge is a product for customers who wish to buy a new house but have to wait to sell their existing house. Bridge loan gives time to these customers to sell their existing property to the right buyer and covers the funding gap between purchase of new house and sale of existing house.
PCHFL has a focused strategy to expand its housing finance business which is a combination of multiple elements: a unique business model – B2B2C – (business to developer to customer) which is a key differentiator; existing robust relationships with developers & channel partners combined with innovative offerings; and a single window that provides end-to-end financing solutions. The company through its wholesale real estate funding business provides end-to-end real estate financing solutions across the entire capital stack such as structured debt, construction finance, flexi lease rental discounting, etc.