Cholamandalam eyes mortgage-finance segment, to offer Rs 15 lakh loans

Cholamandalam Investment & Finance, a 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 ($21,000), he said.

Prime Minister Narendra Modi’s administration has pledged to build homes for poor families by 2022. 

A government plan to provide benefits including interest subsidies has seen a surge in funding for affordable