India’s new housing finance company in no hurry to make a mark?

India’s new mortgage lender is in a hurry to find a market full of people. Instead of angrily expanding its inventory, Godrej Housing Finance will focus on recruiting 1,000 customers in March to assess the sustainability of its plans and processes, said Chief Executive Officer Manish Shah.

“One way to find fault is to bite more than you can chew,” Shah said in a telephone interview. “Our main goal is to understand if we have an engine that knows how to ride well for customers, which helps them a lot.”

The company, which launched its lending business last month, is open to purchasing goods from other reputable lenders and banks in the financial year beginning April, he said.

Godrej is entering a industry that has been weakened by debt collapse and slowing debt growth even before the crisis began. However, housing demand is on the rise as property prices fall and mortgage rates fall sharply in 16 years.

The chief financial officer, a unit of conglomerate Godrej Group that does everything from pillars to houses, wants to run a sturdy ship that aims to build a more expensive building, Shah said. You want a mortgage limit of 1.5% to 2% and initially focused on serving the buyers of houses built by Godrej Properties Ltd. and top builders.

In a country where owning a home for yourself is a sign of security and failure to repay a mortgage loan, most lenders claim this secure part. Recognizing the tough competition in India’s 21 trillion-dollar ($ 284 billion) goods market, Godrej will use multi-consumer price scales instead of limited clothing limits to determine borrowing prices, Shah said.

“We will have a big gap between the lowest and highest interest rates so that we may do a better job of maintaining our spread,” he said.

The company is currently funding its loan book with money donated by Godrej Industries’ parents. It is likely to borrow 10 billion rupees to $ 20 billion in bonds and loans in the next financial year and make a profit in the first quarter of March 2022, Shah–Bloomberg said.


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