IndoStar Capital to unveil housing finance arm shortly
Corporate and SME-focused non-banking finance player IndoStar Capital will soon enter the retail lending space by launching a home finance subsidiary as part of its asset diversification strategy.
“Four months ago, we applied for a home finance license with the National Housing Board. We expect to get the permission in a month or so and we hope to launch a home finance subsidiary by the later part of this fiscal year,” said Vimal Bhandari, Chief Executive and Managing Director, IndoStar.
The proposed home finance arm will focus on small ticket lending to self-employed people, which is a very large untapped market. In the meantime, the company is focused on corporate lending with the segment accounting for over 70 per cent of the close to Rs 4,500-crore loan book. The rest comes from real estate developers and SME lending.