Sundaram Home Finance has announced its foray into affordable housing financing and will consider home loans up to Rs. 3.5 million.
The company believes that the affordable housing finance sector has the potential to become a fast-growing area for the company in the long run.
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“This is a natural extension of what we have been doing since our inception. Focusing on our retail customer base in tier-2 and tier-3 towns is an integral part of our growth plan,” said Lakshminarayanan Duraiswamy, Managing Director, Sundaram Home Finance.
The company will focus on second- and third-tier towns, expanding into affordable housing. The company plans to open about 10 branches in second- and third-tier towns in Tamil Nadu and Andhra Pradesh by March 2024, and will hire 50-75 staff exclusively for the affordable housing sector in the first phase.
“There is a clear intention of the government to focus on smaller customers in the affordable housing sector. We believe we understand this sector very well and are well positioned to capitalize on the opportunities presented by this segment,” added Duraiswamy.
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In October last year, the company diversified into the small business lending business, financing up to Rs. Rs 2 million for small businesses in tier 3 and tier 4 towns. The company has planned to double the number of SBL branches to more than 20 and increase the number of employees to around 200 in the first half of this fiscal year.
Sundaram Home Finance had a net profit of Rs. Expenditure of Rs 570 crore for the quarter ended 30 June 2023 is Rs 1104 crore.
