Godrej Group Plans Investing Rs.1500 crore in Housing Finance

Godrej Group has introduced its housing finance business and is aiming to build a loan book of Rs. 10,000 crore and a customer base of 40,000 borrowers in the next three years. Godrej Properties and Godrej Housing Finance’s chairman, Pirojsha Godrej has stated that the new entity Godrej Housing Finance (GHF) is planning to infuse around Rs.1000 to Rs.1, 500 over the next three to four years and subsequently borrow at competitive rates.

The company has launched home loans at a lesser rate of 6.69 percent as the introductory pricing, and they would provide fast and flexible home loans and commence operations starting with Bengaluru, Mumbai, Pune, and Delhi-National Capital Region. Now, with GHF the Godrej Group has ventured into the financial services business space.

Pirojsha Godrej Says, “The increasing formalization of the real estate sector combined with the dislocation in the residential real estate and housing finance markets makes this a particularly interesting opportunity at the current moment. We hope to deliver value to the Indian home buyer with a deep focus on fair, fast, and flexible home loans."

The company has the aim to develop a long-term, retail financial services business that is scalable. Now the GHF would be able to provide loans to buyers in projects of group firm Godrej Properties Ltd and then would stretch to other projects as well.
Manish Shah, Managing Director and CEO, Godrej Housing Finance says “The industry is plagued with being complex and convoluted with hidden conditions and painfully long customer journeys.” He adds, “We aim to correct this and usher a refreshingly simple and transparent way of doing business. We want to give customers a home loan that is customized to what’s important to them, basis their housing needs, financial capability, and convenience."

While GHF would be a loan size of Rs.50 lakh and it would be finance homes in the Rs.30 lakh to Rs.1.5 crore and more category, with a vital focus on metros and the mass-affluent category.

Godrej said for the first two years, the company will look at organic growth and after that, it may look at inorganic opportunities for growth as well. GHF plans to focus on the mortgage business starting with home loans, followed by Loans against Property.