Muthoot Pappachan Group has entered housing finance segment and is offering home loans suitable for low income groups. The company made this decision after taking into account the need for home loans in its state of Kerala.
The company has aimed to grow its home loans book to over Rs. 250 crore in the following five years.
It is reported, that the bank will be offering these loans to customers through its branches located in Kottayam, Kozhikode, Kochi and Thrissur.
On the matter, the Executive Director of Muthoot Pappachan Group, Mr. Thomas Muthoot said, "We see great need and immense scope in the home loan market, especially in the low income segment. The idea is to be a facilitator to every Indian's dream of owning a house."
The loan product has been developed keeping in mind the lower middle and lower income group, like in informal sector, who find it difficult to get home loans because of lack of income proof.
The repayment period of the product has been kept at 15 years and different types of home loans will be provided for a variety of related purposes like purchasing new houses, under-construction property, home extensions and self constructions on own plots.