Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2017 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.

Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
Sundram Finance ventures into housing finance - Views on News from Equitymaster
  • E-MAIL
  • A  A  A
  • Jan 6, 2000

    Sundram Finance ventures into housing finance

    Sundram Finance (SF), a major player in the retail finance business has floated a new company, Sundram Home Finance (SHF), with the objective of providing home finance to individuals.

    The new housing company will have a paid up capital of Rs 500 m, which is to be infused in two stages. Sundram Finance has picked up 65% stake in the new venture by investing US$ 7.5 m while International Finance Corporation will hold 20% (US$ 2.3 m). A multinational financial institution is expected to pick up the balance 15%.

    SHF has also entered into a strategic tie-up with United India Insurance to provide housing insurance at a low premium. Talking to the press, Mr. Nitin Palany, managing director of SHF said, that the customer would have to pay premium only once at the time of disbursement of the loan. The insurance on the mortgage property will then be available over the tenure of the loan. A unique feature of the insurance offered through this route is that the one-time payment of premium will be less than 50% one would normally pay. Typically, housing premiums are paid every year till the term of the loan.

    SHF plans to offer housing loans at competitive rates of 13.5% for loans up to Rs 1,000,000 and at 14.5% for loans above Rs 1,000,000. The table below clearly shows that SHF has tried to place itself at par with the leader of the industry HDFC. It will initially offer its services in south India and will leverage on the strength of its parent company, which has a strong national network of 95 branches with 57 of them located in the south. SHF will also make use of the huge data bank of retail clients built by SF. This will be advantageous for SHF as the time taken to appraise and process the home loan application is reduced.



    Equitymaster requests your view! Post a comment on "Sundram Finance ventures into housing finance". Click here!


    Copyright © Equitymaster Agora Research Private Limited. All rights reserved.
    Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

    LEGAL DISCLAIMER: Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA or Canada, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.

    SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

    Equitymaster Agora Research Private Limited. 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
    Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: info@equitymaster.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407

    Become A Smarter Investor In
    Just 5 Minutes

    Multibagger Stocks Guide 2017
    Get our special report, Multibagger Stocks Guide (2017 Edition) Now!
    We will never sell or rent your email id.
    Please read our Terms