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Piramal Capital Announces the Launch of its Housing Finance Business

Overall housing finance loan book is INR 5,200 crores as on March 31, 2019. In less than 2 years since its launch, PCHFL expanded its presence in 15 cities with 16 branches

Piramal Capital & Housing Finance Limited (PCHFL), the wholly-owned subsidiary of Piramal Enterprises Limited, today announced its foray in Madhya Pradesh with the launch of its housing finance business in Indore. The company will provide its housing finance offerings namely home loans, loans against property and small ticket construction finance for home buyers (salaried and self-employed) in the Indore market.

With a robust network of 800+ developer relationships and 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, “Indore is an important growth market for PCHFL. This launch marks our foray into Madhya Pradesh and is aligned to our strategy to expand our housing finance presence where there is a growing demand for real estate and home loans. We are excited to partner with developers & channel partners to strengthen their business and offer housing finance solutions to their customers. Currently, the housing finance business contributes ~10% to PCHFL’s overall loan book, which is expected to increase to 15-18% by March 2020.”

PCHFL has three innovative products in its portfolio that cater to the needs of the market and customers.

SUPERLOANS factor in future income potential whilst assessing the credit parameters for a retail loan to enable customers 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 homebuyers).

AdvantAGE is a product wherein 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

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 the purchase of a new house and sale of an 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.

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