(L to R) Pirojsha Godrej, Chairman, Godrej Housing Finance and Manish Shah, Managing Director and CEO, Godrej Housing Finance
(L to R) Pirojsha Godrej, Chairman, Godrej Housing Finance and Manish Shah, Managing Director and CEO, Godrej Housing Finance

Godrej Group marked its entry into the financial services industry with Godrej Housing Finance (GHF). The non-banking financial company (NBFC) aims at building a balance sheet of Rs 10,000 crore with over 40,000 customers in the next three years.

Speaking to the Free Press Journal, Pirojsha Godrej, Chairman, Godrej Housing Finance, said the group did evaluate the possibility of acquiring an existing NBFC and its team. However, the idea of building its own team made more sense. “This (building the team) will be our focus for the next 1-2 years. But we will keep an eye out,” said Pirojsha Godrej, while talking about the group's view on inorganic growth for the new venture.

He added the timing is good (for acquisition) considering there are a lot of stressed assets including NBFCs, properties among other assets. “But the focus is to grow organically.”

The company is looking at offering fair, fast and flexible home loans across India starting with customers in Mumbai, NCR, Pune and Bangalore. To start with the company will onboard existing and new customers of Godrej Properties. “We will go to other developers based on the lessons we learn from Godrej Properties,” said Manish Shah, Managing Director and CEO, Godrej Housing Finance. At present, the company has offered loans to customers of Godrej Properties’ NCR project already. “We have taken the process entirely digital for the customers.” The company has partnered with fintechs and others to make the digital experience seamless.

Shah claimed the company is offering the lowest rate of interest in home loans starting at 6.69 per cent.

GHF intends to focus on the mortgage business starting with home loans, followed shortly by loans against property. In the near future, the company will expand its product portfolio to offer business and personal loans, leveraging the Group’s consumer and agri business ecosystems to build these verticals.

For the next few years, the company is looking at depending on the Group for financing rather than opting for stake sales and other options.

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