Fullerton India, a non-banking finance company, plans to enter mortgage business as it has received license to set up a housing finance subsidiary.
National Housing Bank has accorded permission to Fullerton India to set up fully-owned subsidiary as Fullerton India Home Finance Company Limited (FIHFC).
The housing finance company would start its business by November with an initial paid-up capital of Rs 100 crore, Fullerton India executive vice-president and head - business and marketing, Rakesh Makkar said.
The new company will largely cater to affordable housing in the lower and middle income segments through Fullerton India's network of 445 branches. At present, the NBFC has about 11 lakh customers.
It will provide customers access to a diversified loan portfolio across loan against property, mortgage loans and home loans segments.
The average ticket size for these loans will be in the range of Rs 6-7 lakh.
Commenting on the development, Fullerton India MD Shantanu Mitra said, "Currently, there is a huge demand in affordable housing segment. The government has also demonstrated its focus to address this shortage through the 'Housing for All 2022' policy."
The company is in a good position to be able to cater to this burgeoning demand through our new housing finance subsidiary, he added.
Fullerton India had earned a profit of Rs 301 crore for the financial year ended March, 2015.
