Anil Ambani group's Reliance Capital today said it has received the necessary regulatory approval to set up a housing finance subsidiary and expects to become a leading player in the home loan business over the next 3-5 years.
Besides the approval by the National Housing Board (NHB) for setting up the the subsidiary, the company has also got the Reserve Bank's nod to set up an NBFC (Non-banking Finance company) subsidiary for its consumer loan business, which would primarily focus on vehicle loans and lending to SMEs.
Announcing the approvals, Reliance Capital CEO Sam Ghosh told PTI over phone: "In the next three to five years, we would be one among the top players in this field. Following this approval, we would enhance our focus on salaried customers, along with the people in business and entrepreneurs."
When asked if the company would be able to offer loans at cheaper rates in a highly competitive market, Ghosh said, "Rates would be competitively priced as with this approval funds would be available at a much cheaper rates."
"While I cannot say that it would be lowest in the country but it would be one of the lowest. Our loan book size as of now is Rs 3,500 crore and would grow further following the NHB approval," Ghosh added.
Both HFC and consumer finance subsidiaries would be in place in the next two months, and the employees currently working with the related businesses at Reliance Consumer Finance would be relocated to the new entities, he noted.