Shriram Housing Finance (SHF), the home loan wing of Shriram Group has decided to focus on customer segment existing in the tier II and tier III cities of the country. SHF has been promoted by the NBFC called Shriram City Union Finance.
According to Mr Sujan Sinha, Managing Director and CEO, Shriram Housing Finance, the set of customers targetted would be those who have been underserved by the major financial institutions of the country.
The company caters to many product segments like gold jewel loans, asset financing, consumer durable loans, small and medium enterprise loans and has a customer base of about 2 million borrowers.
Regarding its new venture, the group is awaiting approval from National Housing Board before it actually commences operations.
"I do not think that comparatively higher rates would be a major hindrance for credit off-take", he said.