Chennai : Muthoot Pappachan Group (MPG), on Friday announced their foray into the Housing Finance segment in Kerala targeting the lower middle & lower income group through their Company, Muthoot Housing Finance Company Limited (MHFCL). Considering the great need for housing loans in the state and particularly in the lower income segment, the Company plans to offer housing loans through Branches situated in Kochi, Kottayam, Thrissur & Calicut districts.  The Company aims to build a loan book size of over Rs 250 Crores over the period of next five years in Kerala.

MHFCL will mainly cater to the housing finance needs of customers whose income range from Rs. 10,000/- to Rs. 30,000/- per month and will offer loans ranging from Rs. 3 lakhs to 15 lakhs, up-to 80%  of the property value. The loan repayment period will be upto 15 years. The Company will offer loans for the purchase of ready property, under-construction house / flats, for self construction on owned plot of land and for home extension.

Speaking on the launch of MHFCL Mr. Thomas Muthoot – Executive Director, Muthoot Pappachan Group said “People in the lower middle to lower income group, especially in the informal segment, face difficulties in procuring housing loan as they do not have any income proof. We aim to reach out to this informal segment through our vast network.  MHFCL’s mission is in line with our Group’s long-term expansion strategy.  We see great need and immense scope in the home loan market, especially in the low income segment.  The idea is to be a facilitator to every Indian’s dream of owning a house.”

“We are targeting the approval and disbursement of loan in just seven working days. All that the customer needs to do in order to avail the loan is submit application , KYC documents and the previous 12 month’s bank statement (if available), along with the document of title. Credit templates have been developed for various informal profiles and the experiential learning from assessing credit is constantly fed back to the credit officers to further refine the assessment methodology. Scanning technology is used to speed up credit assessment timelines.” added Mr Maneesh Srivastava, CEO, Muthoot Housing Finance Company Ltd.

“We are committed to strengthen MPG’s legacy of building trust and ensuring transparency in all our transactions  by offering superior level of speedy, doorstep services to our customers.’’ adds Mr. Shreejit Menon, National Head, Sales and Business Development, Muthoot Housing Finance Company Ltd

Over a period of 5 years, MHFCL aims to lend Rs 1,000/- crores to housing finance customers nationally through calibrated growth in the target markets. In future, the Company plans to invest heavily in technology to bring down cost of operations and enable sophisticated risk management and risk modeling to factor in learnings from the business.