Sundaram Home Finance plans foray into affordable housing finance

Sundaram Home Finance Ltd. (SHFL) is all set to enter the affordable housing finance space for disbursing home loans up to ₹35 lakh in Tier 2 and 3 towns in Tamil Nadu and Andhra Pradesh, said a top official.

“This is a natural extension of what we have been doing since inception. Focusing on the retail customer segment in Tier 2 & 3 towns is an integral part of our growth plans,” said managing director D. Lakshminarayanan.

In the first phase, SHFL will hire 50-75 people. The first set of branches will be opened by October or November in places such as Karur, Tirupur, Guntur and Vijayawada.

Asked about the disbursement target, he said it would be around ₹10 crore by March 2024.

As a wholly owned subsidiary of Sundaram Finance Ltd., SHFL offers home loans, plot loans, home improvement and extension loans, loans against property and small business loans to traders and small shops.

For the June quarter, SHFL posted net profit of ₹57 crore on disbursements of ₹1,104 crore.