Sundaram Home Finance to tap affordable housing segment

Sundaram Home Finance has drawn up aggressive expansion plans in offering home loans up to Rs 35 lakh in the affordable housing space, a top official said on Tuesday.

The company, a wholly-owned subsidiary of Sundaram Finance Ltd, after entering the small business loan segment in October 2022 has undertaken further diversification with the plan to launch home loans up to Rs 35 lakh.

The company under the new business would focus on Tier-II and III towns in Tamil Nadu and Andhra Pradesh.

"This is a natural extension of what we have been doing since inception. Focusing on the retail customer segment in Tier-II and III towns is an integral part of our growth plans," the company's Managing Director Lakshminarayanan Duraiswamy said.

The central government's stated intent is to focus on the smaller customers in the affordable housing space.

"We believe we understand this space well and are well positioned to leverage the opportunity that this segment presents," he said in a statement.

"We think that this (affordable housing space) segment has the potential to be a fast growing one for us in the long term," he added.

To drive the company's foray into the affordable housing segment, Sundaram Home Finance has plans to set up 10 branches in Tier-II and III locations of Tamil Nadu and Andhra Pradesh.

The company also plans to recruit 75 people in the new business by March 2024.

Sundaram Home Finance reported a net profit of Rs 57 crore in the April-June 2023 quarter on disbursements of Rs 1,104 crore, the statement added.