Bajaj Finance housing arm aims to give Rs 2Kcr home loans in FY16

Non-banking financial services player Bajaj Finance, which is gearing to launch a dedicated housing finance subsidiary next fiscal, aims to disburse up to Rs 2,000 crore in home loans to the affluent class in FY16, a top official said.

"We expect to start operations for the housing finance company in the first quarter of FY16 and will look at disbursements of Rs 1,800-2,000 crore by March 2016," Bajaj Finance Chief Executive Rajiv Jain told PTI.

He said that the company will be target the affluent and super affluent sections of society for its home loans business and focus on the self-employed category.

A typical loan to the self-employed would be between Rs 1.2 crore and Rs 1.3 crore, while a loan to a salaried person would be between Rs 75 lakh and Rs 80 lakh, Jain said.

Last week, the Pune-headquartered company announced its plans to spin off a separate subsidiary for its home finance business, to take advantage of certain benefits which accrue to a dedicated housing finance company.

After putting in seed capital worth Rs 10 crore, it would apply to the housing finance sector regulator National Housing Bank (NHB) to start its operations.

Bajaj Finance already has a mortgage book and such loans constitute around 40% of its book at present.