DHFL launch firm to intend ‘bottom of pyramid’ market
Dewan Housing Finance Corporation Limited (DHFL) has launched Aadhar Housing Finance Private Limited, targetting the ‘bottom of the pyramid’ home loan space in Uttar Pradesh and other states with similar socio-economic profile.
DHFL has chosen Uttar Pradesh as the launch pad of the new group company acknowledging the ‘huge potential’ in the market. Later, Aadhar would expand operations to Bihar, Jharkhand, Madhya Pradesh, Orissa and Chhattisgarh. It will provide loans up to Rs 6 lakh, besides project loans for developing low-cost housing. “We will seek the participation of the state government as the housing needs of low income group cannot be addressed without the state’s support,” DHFL CEO Anil Sachidanand told Business Standard after the launch, last night.
He said, bulk of the usable land was owned by the Central and state governments and their support was vital for catering the dwelling needs of the low income strata. “Uttar Pradesh, especially Lucknow has the maximum potential in low-cost housing. According to estimates, there is a shortfall of about 2.5 million low cost housing units here,” Aadhar CEO Harshil Mehta justified the selection of Uttar Pradesh as the company’s launch pad. He noted, there was overwhelming demand for housing units costing up to Rs 6 lakh, but there was a supply crunch.
It will offer home loans, home improvement/extension loans, plot loans and gradually extend products like mortgage loan, lease rental finance and non-residential property loan.
Aadhar is jointly promoted by DHFL and International Finance Corporation (IFC), which is a member of the World Bank Group. IFC has 20 % equity in Aadhar, while DHFL and its subsidiary DHFL Vysya Housing Finance have the remaining 80 % equity.
DHFL has customer touch-point of over 345 locations across India catering to semi-urban and rural belts. It has entered into strategic tie-ups for joint financing of home loans with Punjab and Sind Bank, Central Bank of India and United Bank of India. DHFL had reported 54 % rise in net profit at Rs 62 crore for the third quarter of the current financial year.
Processing your request, Please wait....
