Cholamandalam plans to enter housing finance business
Cholamandalam Investment & Finance Co., an Indian financier for vehicles, is persisting with its plan to set up a mortgage-finance unit undeterred by a credit crunch that’s roiling shadow banks in the nation. A housing finance subsidiary will help the company grow its loan book faster, said Cholamandalam’s Executive Director Arun Alagappan. The company will target buyers of low-cost homes and offer loans of as much as Rs 15 lakh, he said. Prime Minister Narendra Modi’s administration has pledged to build homes for poor Indian families by 2022. A government plan to provide benefits including interest subsidies has seen a surge in funding for affordable homes and lured buyers and financiers such as Cholamandalam, even as the collapse of Infrastructure Leasing & Financial Services Ltd. led to a cash squeeze at shadow lenders.
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