Sundaram Home Finance is planning to foray into the affordable home loan segment, which is growing fast in sync with the government’s “housing for all” goal.
The company, wholly-owned by Sundaram Finance, said it would focus on tier 2 and tier 3 towns for its diversification into the affordable housing segment.
“This is a natural extension of what we have been doing since inception. Focusing on the retail customer segment in tier 2 and tier 3 towns is an integral part of our growth plans,” managing director Lakshminarayanan Duraiswamy was quoted as saying in a press statement.
“We think that this segment has the potential to be a fast growing one for us in the long term,” he said.
The lender started giving small business loans in October last year.
On the plans for the affordable housing segment, Lakshminarayanan said that the company plans to open around 10 branches in smaller towns in Tamil Nadu and Andhra Pradesh and hire 50-75 people exclusively for the affordable housing segment in the first phase by March 2024.
Sundaram Home Finance had Rs 11200 crore of assets under management at the end of March 2023. The company earned a net profit of Rs 215 crore in the last financial year.
