Kerala based Muthoot Pappachan Group (MPG) has announced to enter the home loan segment. The group will provide home loans under Muthoot Housing Finance that will operate as a 100 percent subsidiary of Muthoot Fincorp. Initially the the company plans to open 25 branches in the the suburban areas of Ahemdabad, Bangalore, Chennai and Mumbai.
The company plans to target the middle class customers with a monthly income ranging between Rs 3-10 lakh. The company will provide home loans between 3 to 10 lakh with a repayment period of a maximum of 15 years.
The company will charge a high interest rate of 15-15 percent as compared to the interest rate that the bank offers that generally ranges around 1-12 percent. Due to this reason most of the customers with the company are likely to constitute of the people that find it hard to get loans at the banks.
The Executive Director of Muthoot Fincorp Ltd. Mr. Thomas George Muthoot said “We will cross-sell home loans to the one million-odd customers of Muthoot Fincorp. Majority of Muthoot Fincorps customers have availed themselves of gold loans and they present an excellent opportunity to cross-sell.”
1 comment:
Here is a great read on the home loan rates situation in India. The teasers have vanished and the truth is more profound.
http://www.indianrealestatefordummies.com/2011/07/hey-wtf-is-happening-to-home-loan.html
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