Piramal Capital & Housing Finance Limited (PCHFL), the wholly owned subsidiary of Piramal Enterprises Limited, has partnered India Mortgage Guarantee Corporation (IMGC) to offer Gruh Setu Home Loan.
The mortgage guarantee-backed affordable home loans will be offered to customers from the unserved and underserved regions, according to a Piramal Capital & Housing Finance release.
The partnership with IMGC will enable PCHFL to deepen its offering through 300+ branches located across the country. Under this product, PCHFL will offer home loans ranging from ₹5 lakh to ₹75 lakhs for tenures up to 25 years at highly affordable rates.
Gruh Setu Home Loan is designed to extend loans to individuals who receive salary by bank or cash, pensioners, employees of proprietorships and partnership firms as well as self-employed professionals like doctors or architects, small business owners, proprietors and partners of partnership firms, as per the press release.
Jairam Sridharan, managing director, PCHFL, said, “Piramal’s Affordable Housing solutions are targeted towards the unserved and underserved customers of Bharat. While we have designed specific products to serve this population, there is a segment that is presently credit unviable. Our new offering Gruh Setu, created in partnership with IMGC, allows us to expand credit into this population with the support of a mortgage guarantee. We expect this partnership to generate 10-12% of our housing business.”
Customers can either directly apply for a loan to PCHFL or by reaching out to channel partners such as connectors and DSAs. Loan eligibility assessment is done by PCHFL and IMGC. Customer is given options for a home loan structure that suits their requirements with longer loan tenures, lower EMIs and affordable rates of interest. The loan is disbursed after the property verification is done by PCHFL
Mahesh Misra, CEO, IMGC, said, “We are delighted to partner with Piramal Capital & Housing Finance. Piramal’s domain expertise in real estate will result in a well-structured mortgage guarantee backed home loan product that will help fulfill the ‘Early Home Ownership’ dream of first-time home buyers in India. It will also provide affordable home loans, through lower down payments, longer loan tenures, and lower EMIs. IMGC will offer complete support to PCHFL in empowering the underserved markets and expanding its operations to 1000+ cities.”
With the acquisition of DHFL, PCHFL is one of the leading players in the retail lending segment with access to over 1 million lifetime customers, presence in 24 states with a network of over 300 branches. PCHFL plans to expand its operations to about 1,000 cities, with physical presence in about 500-600 cities, over the next three years. The company leverages the “phygital” lending platform driven by Machine Learning (ML) and Artificial Intelligence (AI), including the new mobile app, said the press release.
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