Mumbai: Tata Capital has said that housing finance and loans to small and medium enterprises will remain at the core of its business. The company, which launched the Prapti home loan scheme four months ago to target the low-income segment, said the vertical was showing promising growth. It is now planning to extend the scheme to other smaller cities with viable growth in the housing segment.

“Home loan is our flagship product. We expect significant growth to come from housing loan business. We are not restricting ourselves to small-ticket loans but are looking across the category,” Govind Sankaranarayanan, COO, Retail & Housing Finance, Tata Capital, told.

Tata Capital has two verticals — retail and corporate. The company said that its total consumer lending stands at ₹29,000 crore. Housing lending portfolio of the company stands at ₹17,000 crore, he added.

Tata Capital’s Prapti scheme offers loans starting at 4 per cent through the Pradhan Mantri Awas Yojna, which aims at providing housing for all. Under the PMAY, launched by Prime Minister Narendra Modi in June 2015, two crore houses are to be built for the poor in urban areas by year 2022, coinciding with 75 years of India’s independence.

Nearly 70 housing finance companies have signed MoUs with the National Housing Bank as of June 1, to avail subsidy under the PMAY.

Sankaranarayanan said the loan scheme was launched keeping the smaller-ticket size in mind. The company said it lends anywhere between ₹3 lakh and ₹10 lakh under the scheme.“The Prapti scheme has shown significant growth. We are typically looking at projects which are in the periphery of metros or smaller towns,” he said, adding the company is also looking to expand its presence in other smaller cities.

He, however, pointed out that the company also lends up to a couple of crores to home buyers in other income brackets.

He said the company will also be extending its loan portfolio to the SME space. “With demonetisation, there is a growing need for loans in the SME space. We offer up to ₹3 lakh for unsecured loans and close to ₹8 lakh for secured loans.”

Source: The Hindu Business Line