Initially, the target of the company will be the customers who will buy flats from the group's real estate company Godrej Properties.
New Delhi: If you are searching for cheap home loans, this news is for you. The Godrej Group has stepped into the field of financial services and for this, it will invest Rs 1,500 crore in its finance company Godrej Housing Finance. The company aims to provide home loans at the cheapest rates in the country.
Loans cheaper than SBI
Godrej Group will provide home loan through its finance company at 6.69%, which is currently less than the home loan rate given by SBI or any other bank. Initially, the target of the company will be the customers who will buy flats from the group's real estate company Godrej Properties.
"We feel that we have gained a lot of understanding about real estate business, now we are venturing into a new business with complete strategy," Pirojsha Godrej, chairman of Godrej Housing Finance, said.
Services starting from these cities
Godrej Housing Finance will start from Mumbai, Delhi-NCR, Pune and Bengaluru, which is half the market of the whole country, later it will be taken to the whole country.
The company's new MD & CEO Manish Shah says that at the moment our goal is to provide cheap and easy loans to customers. It aims to achieve the portfolio target of Rs 1,000 crores by March 2021. Within three years of launch, the company aims to get 40,000 loan accounts, which are worth around Rs 10,000 crore.
Current home loan rates
Now let's take a look at the interest rates of the rest of the banks of the country. Union Bank of India is offering the cheapest home loan right now, which is starting from 6.7%, while SBI's home loan is starting from 6.95%.
Bank Home Loan Rate (in per cent)
- Union Bank of India 6.70 - 7.15
- Kotak Mahindra Bank 6.75-8.45
- Indian Bank 6.85-8.40
- Bank of Baroda 6.85- 8.70
- Central Bank 6.85 - 9.05
- State Bank of India 6.95- 7.50
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