New Delhi, March 02, 2018: The summation of the typical Indian dream rests in the oft-quoted phrase of “roti, kapda, aur makaan”. Now, if you are amongst millions of Indians planning to become first-time homebuyers, then there’s a huge reason to cheer – business icons Rajesh Adani and Gautam Adani are finally venturing into the affordable mortgage lending business.
The Adani Group is planning to set up a housing finance company that will offer home loans through realty developers. The group will also lend directly to the retail customers.
Setting sights on housing for all by 2022
The long-term investment, projected to trigger Adani Group’s current growth, is propagated by the recent alterations to the US corporate tax system, constructive regulatory, business ecosystem, and its strong and steady business performance.
Previously, the US$11-billion group was in talks with a leading housing finance company for an acquisition deal, but it could not be closed. Later, the Adani Group applied for a housing finance license with the National Housing Bank. The Adani brothers had integrated Adani Housing Finance Ltd., a private company in September 2017, which applied for a housing finance license towards the end of 2017. This business initiative is aligned with the government’s avowed objective of ‘Housing for All’ by 2022.
“Adani has applied for a license to set up a housing finance company,” said a source close to the development. “After the company got its non-banking finance business, it is looking to explore the retail and housing space,” the source added.
Domain experts believe that there’s a huge scope for establishing housing finance companies with India Ratings, in anticipation of a demand for 25 million homes over FY17-FY22. Seeing the current market statistics, the experts suggest that demand for affordable housing is expected to grow in the medium and lower income group categories.
“We anticipate large corporate entering the space either by setting up a new company, or by buying stake in an existing one,” said Mahesh Singhi, Founder and Managing Director, Singhi Advisors. “For many large corporate, with a presence in non-banking finance sector, it is seen as a natural progression to assess opportunities within the retail lending space.”
Domain experts also noted that the Adani initiative will cater to the increasing demand for affordable housing and lending by increasing mortgage lending in low-and moderate-income communities. The initiative is also poised to facilitate commercial lending to build affordable housing.
After the company got its non-banking finance business, it is looking to explore the retail and housing space.
Rajesh Adani and Gautam Adani plan to scale up the company, making it as one of the leading affordable housing players, by implementing fully-automated underwriting and risk management practices through its internal sourcing mechanism.
The common man can dream of a house with more conviction now.
Corporate Comm India(CCI Newswire)
