Cholamandalam Investment & Finance Company Ltd, the NBFC arm of $4.4 billion Murugappa Group, is planning to apply for a licence with the National Housing Bank (NHB) to scale up its housing finance.
Vellayan Subbiah, managing director, Cholamandalam Investment & Finance Company Ltd, said: "At present, we are understanding and getting the business dynamics and we will continue for this to the next year, following which the company will apply for licence."
He said the company would target self-employed with a ticket size of Rs 30 lakh. "The segment presents a huge opportunity for us. However, the loan money will be disbursed against property," he said.
The company's potential customers also include restaurant owners and service businesses.
The company also said it had started lending to the SME business, both for working capital and term loans (against plant, equipment, land and asset classes). At present, the book size is around Rs 13 crore, while the yield is a little above 14 per cent.
On the company's fund raising plan, Subbiah said, in February the company had raised around Rs 300 crore through equity issue around 21 investors, including FIIs, MFIs, PEs and insurance companies. "The Tier I capital is around 11 per cent and we may need to raise money in 2014-15," he said.
