Competition likely to stiffen in home loan market
By Joseph Samson
Aug 17, 2010
Print    Email    RSS   

The Rs 4.8 lakh crore home loan market of India is likely to experience more competition in the upcoming months. The competition would rise owing to the constant pressure building up from the part of non banking finance companies (NBFCs). These companies are seeing a compounded annual growth rate (CAGR) of 15% since the last five years.

Laxmi Vilas Bank has come up with its housing finance wing. Others in the race are Shriram City Union Finance and financial services intermediary Edelweiss.

"There is enormous room not just for commercial banks but also for housing finance companies (HFCs). Our strategy to enter this sector is to focus on the retail side of business. We have already a asset management company and would be entering into life insurance," says Mr Rujan Panjwani, president, Edelweiss Capital.

"We have been offering gold loans and now our customers can also avail home loans from us. The housing finance foray will begin shortly through a subsidiary with an initial capital of Rs 100 crore," says Mr R Kannan, MD of Shriram City Union Finance (SCUF).

Mr Kapil Wadhawan, CMD of DHFL, says, "Housing finance being a secured lending with lesser delinquencies is much safer. The consistent growth in the books of HFCs is also acting as an incentive for new entrants."

"Lending is part of their business proposition and it may become difficult for them to focus on lending quality," he warns.


(Comments Posted : 0) Post Your Comments
Show All Comments
 Select a product:

 Select a product:

Should interest rate only be considered in...
Tips to buy an ‘under construction’ home
Evaluate Hidden costs before buying a house
Stop worrying for your home loan: Get it...
Home Loan Agreement: An important aspect...

PINJORE: CaℒL Giℛℒs In PiNjOrE 09915787550...
PINJORE: CaℒL Giℛℒ In PiNjOrE 09915787550...
how to gate my home loan certificate

Canara Bank earned a profit of 60%. Feb 6, 2015
New Branch of Laxmi Vilas bank at Vijayawada Jan 30, 2015
Home loan EMIs expected to drop down Jan 21, 2015
Corporation Bank received MSME banking excellence award 2014 Jan 19, 2015
Home loan rates set to fall, after reduction in repo rate Jan 16, 2015
News Archive