Edelweiss Housing Finance Ltd, which launched its business in Chennai on Thursday , plans to expand to over 10 cities over the next two years.
The company is now in nine major cities and will soon be present in 19 cities which together account for more than 90 per cent of the home loan market, according to Mr Anil Kothuri, Executive Vice-President, Edelweiss Housing.
Home loans
The company disbursed over Rs 780-crore home loans last year and in the current year, this is expected to grow to over Rs 2,000 crore. The disbursals this year will include about Rs 1,500-1,600 crore towards home loans and the balance to the SME segment to which it is a relatively a new entrant.
So far, the housing finance company was accessing its funds from the Edelweiss Group but from the current year will opt for direct borrowing.
These will be from conventional sources including the National Housing Bank.
Edelweiss Housing has grown consistently with the continued expansion to new markets.
The company hopes to disburse over Rs 3,000 crore by 2015.
In Chennai, Edelweiss Housing will use the outlets of Edelweiss Financial Advisors and add more branches.
The home loan market in the city is estimated at about Rs 15,000-18,000 crore and the company has potential to generate over Rs 600 crore business for itself in the next three years, he said.
Fast processing of home loan applications to disburse loans within a week, direct contact with customers, credit capability to extend higher loans to customers and loan duration of up to 25 years are some of Edelweiss Housing’s strengths, Mr Kothuri said.