Star Housing expects 10-15% of business from semi urban locations in next 3 years

Star Housing Finance expects to garner 10-15 per cent of its business through its newly launched customised products for the semi-urban population over the next three years, tapping on the reverse migration post the COVID-19 pandemic.

There has been an uptick in demand fueled by the migration from small hamlets to semi-urban areas and reverse migration from cities to these locations, Star Housing Finance (Star HFL) said in a release.

It has been estimated that approximately 60-75 million (6-7.5 crore) individuals have migrated back to their natives during the pandemic and out of these, at least 25 per cent continue to start their life cycle from their respective origins, it added.

"This has augured well for the housing sector as it has contributed to an incremental demand of 4-5 million units (40-50 lakh)," Star HFL said.

Ashish Jain, MD of Star HFL, said the company has come up with specific home loan products after exhaustive research by its ground staff.

"We are probably the first housing finance company in India to offer customised rural centric home loan products, specifically catering to the demand of reverse migrated population and the small-time self-employed individuals.

"Our differentiated offering aims to provide a fresh outlook while addressing the real issues faced by households in rural areas, which has predominantly noticed only plain vanilla housing loan products," he said.

Star HFL expects a minimum of 10-15 per cent of business through these loans and accordingly sees providing housing finance assistance to more than 1,000 families through these products over the next 36 months, Jain said.

The company has launched five products under its 'Star Gram Griha Loans' umbrella.

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It will offer customised loans for construction of a pucca roof, construction of additional floor, business purpose construction for self-employed individuals, and financing for construction for toilets in an existing structure.

The rural and semi-urban focussed Star HFL is present across Maharashtra, Madhya Pradesh, Gujarat, Rajasthan and Tamil Nadu.