Piramal Finance Ltd, the non-banking finance corporation of the Piramal Group, has set up a housing finance agency to provide home loans thru realty builders and direct lending to retail clients. Piramal Housing Finance received the license from the National Housing Bank, the regulator for housing finance organizations, on 4 September, the enterprise said.
“We had been lending to developers already. Now, our recognition is to build the retail enterprise within the domestic mortgage phase. For this, we can leverage the connection we have constructed with various realty builders and our partnership with the Shriram Group that has the important knowledge in retail lending,” Ajay Piramal, chairman of Piramal Enterprises Ltd, said.
Piramal started the housing finance organization set up as a standalone agency beneath Piramal Finance with a preliminary capital of Rs1,000 crore.
“If we need greater capital, we may additionally study fund-raising thru fairness and non-convertible debentures,” he said. The housing finance corporation will not have interaction inside the commercial enterprise of production finance. The lending version may be “B2B2C” (enterprise to business to consumer).
“Our developers were asking us to start a home loan commercial enterprise. Real estate is something we recognize. The B2B2C version will help us in keeping assets excellent as the developer loans can be hedged,” said Piramal.
Piramal Housing Finance has garnered Rs200 crore really worth of assets for a reason that launch and might be focused on self-employed clients in particular. It has thus far tied up with 15 developers for 30 projects. The company has a team of a hundred and fifty human beings for the home loan business.
Even though bullish on affordable housing, the housing finance agency is likewise searching for huge-ticket loans of Rs25 lakh and above. “We trust there might be consolidation in real property commercial enterprise and handiest the top developers will thrive. There can be the urge for food for proper projects,” said Khushru Jijina, coping with a director of Piramal Finance and Piramal Housing Finance.
Asked if the home loan commercial enterprise will compete with Shriram Housing Finance Ltd, Piramal stated the groups might be “complementary and now not competing” because the Piramal HFC will offer larger loans.
Ajay Piramal: Interests of Shriram shareholders might be paramount in a merger with IDFC Piramal Housing Finance will now not be set up too many branches but will observe the “hub and spoke version” for serving customers. It plans to set up only branches in Mumbai. “We will begin with start off with the metro cities and later faucet the tier-2 and tier-3 geographies,” said Jijina.
The length of the housing finance marketplace is expected to be Rs15 trillion, in keeping with Harshal Patkar, senior analyst-economic institutions, India Ratings, and Research Ltd, a credit score rating agency.
“For Piramal Finance, it was a logical step to mine existing relationships with the builders utilizing generating leads for home loans. It will, but, take some time for them to set up the low-priced housing finance business as understanding neighborhood geography as well as setting up infrastructure might be a time-eating method,” Patkar said.
Piramal Finance has also carried out an asset reconstruction company license and expects approval from the Reserve Bank of India. In August closing year, Piramal Enterprises and Bain Capital Credit, a global credit score professional, signed a memorandum of understanding to invest in stressed belongings in India.
“We will have a look at partnering with Bain for the ARC as well. Both Bain and Piramal have the understanding to show around stressed agencies,” said Piramal, including that the ARC will examine large restructuring opportunities in the metallic, vehicle ancillary, energy, and cement sectors.
Piramal Enterprises has property beneath the control of over Rs50,000 crore within the actual property segment. By 2020, the firm expects the mortgage book for the home loan business to reach Rs15,000 crore.
Anyone thinking of buying a new or a used car, or even leasing one, would do well to start by investigating and arranging their financial credit. Knowing how much money they can afford to spend on any car gives them a much better structure regarding whether to buy a new or a used car, or type of model of a particular vehicle will best suit their needs.
By far, the most important thing is to obtain a copy of your credit report. A credit report is a document or a dossier compiled by one of the main credit rating agencies that are used as a basis for generating a credit score.
A credit score is a determining factor that the credit rating agency and any lender will use in determining whether or not to lend you any money, and if so, on what terms and conditions. These terms and conditions normally include a size of the down payment, the length or term of the loan, the interest rates charged, the size of the monthly down payments, and anybody repayment charges in the event of refinancing a loan.
A credit score is essentially a number allocated on a scale between a range of two other numbers. For example, an individual might have a credit score of 350, set within a range of zero and 700.
The credit report used to generate the credit score is a mixture of different information items that the credit rating agency collects. This information will come from several sources, including the application form filled in by the individual applying for the loan.
The information will be both personal in nature, as well as financial, both current and historical. The personal information relates to name, any previous names, date of birth, place of birth, current and previous addresses, current and previous employers, etc.
The financial information will relate to current credit arrangements with other banks and credit card companies, as well as a detailed history of any payment problems or issues.
The credit rating agency will also take finance into account items company such as bankruptcies or defaults on loans, or any general patterns of behavior that they interpret as detrimental to an individual’s capacity to repay a loan.
The main reason why it is important to obtain a credit report is that the individual can check the report to see what items are in it. The credit rating agencies are only allowed to include certain information items for a fixed number of years.