Services to be launched in Andhra Pradesh, Telangana, Karnataka, Gujarat & Madhya Pradesh in the first phase
NEW DELHI, Jan. 17, 2025 /PRNewswire/ — IIFL Home Finance Ltd., India’s leading affordable housing finance company, announces a strategic partnership with Common Services Centre (CSC), a dedicated network of Village Level Entrepreneurs (VLEs) under the Ministry of Electronics & Information Technology (MeitY), Government of India. The collaboration aims to utilize CSC’s digital platform, spanning 6 lakh CSC centers across the country to facilitate home finance queries and lead generation in different states of India.
The partnership leverages CSC’s extensive network, which hosts a variety of services such as credit enablement, EMI collection, and banking services in remote locations. IIFL Home Finance foresees tremendous potential in this collaboration to extend its reach beyond Tier 1 and 2 markets, addressing the needs of customers in Tier 3, 4, and 5 locations who are underserved in terms of loan disbursement and home ownership.
Initially, IIFL Home Finance will begin disbursements under the given partnership in Andhra Pradesh, Telangana, Madhya Pradesh, Gujarat, and Karnataka, with further plans to penetrate deeper in regional markets.
Mr. Monu Ratra, ED and CEO, IIFL Home Finance, said, “Our partnership with CSC represents a significant milestone in our mission to make affordable housing accessible to every household. By partnering with CSC and leveraging its extensive pan-India network, particularly in semi-urban areas, we will significantly expand our reach. Our technology-driven processes are designed to make the home loan journey as smooth and hassle-free as possible. This collaboration reflects our dedication to financial inclusion and aligns with the government’s vision of ensuring Housing for All.”
Mr. Sanjay Kumar Rakesh, MD and CEO, Common Services Centre (CSC), on the tie up adds, “Partnership with IIFL Home Finance is perfectly aligned with our mission to felicitate essential finance services within the rural belts. By integrating home finance solutions of IIFL Home Finance into our platform, we’re empowering our representatives to play a crucial role in making the dream of home ownership a reality for the EWS and LIG category. Our network of 6 lakh CSC centers across 2.5 lakh Gram Panchayats will now serve as a bridge, connecting aspiring homeowners with the Company’s affordable housing solutions.”
The company will offer Home Loans to start with and would further expand the bouquet of services in Tier 2, 3 and 4 markets. The initiative is not only a testament to IIFL Home Finance’s commitment to financial inclusion but also aligns seamlessly with the Government of India’s Pradhan Mantri Awas Yojana 2.0 (PMAY 2.0), which emphasizes ‘Housing for All’ by providing affordable housing to the economically weaker sections of society.
By leveraging CSC’s extensive network, IIFL Home Finance is poised to become the partner of choice for millions of aspiring homeowners in underserved rural markets, reinforcing its leadership in the affordable housing sector and driving forward the national agenda of inclusive growth.
About IIFL Home Finance Ltd.
IIFL Home Finance is technology driven retail focused housing finance company with the primary focus on providing loans to first time home buyers in the economically weaker sections (“EWS”) and low-income group (“LIG”) group. We provide loans to customer in the suburbs of Tier 1 cities and Tier 2 cities and to customers residing in Tier 3 and Tier 4 cities in India where the collateral is the existing or self-occupied residential property. The Company serves salaried and self-employed customers which account for 53.18% and 46.82% of our AUM as of September 30, 2024, respectively. We have served over 4,27,048 customers as of September 30, 2024.
The Company offer customers a range of mortgage-related loan products, including (i) housing loans, for purchase of ready built residential units, under construction property by approved builders, self-construction, home improvement on pre-owned property and purchase of land for construction of residential property; (ii) secured business loans, for primarily meeting working capital requirement, business use and purchase of commercial property; and (iii) affordable housing project loans, to meet construction expenses of affordable housing projects of reputed developers. Housing loans, secured business loans and affordable housing project loans contribute 77.30%, 20.42% and 2.28% of our AUM, as of March 31, 2024, respectively and 78.48%,19.40% and 2.12% of our AUM, as of September 30, 2024, respectively. As on September 30, 2024, the housing loan and secured business loans have an average loan-to-value of 71.30% and 47.05%, respectively, at the time of sanctioning of the loans. The average ticket size of housing loans secured business loans and affordable housing project loans was ₹ 0.16 crores, ₹0.10 crores and ₹7.02 crores, respectively, as of September 30, 2024.
Company’s AUM has grown at a CAGR of 22.60% from ₹23,617.37 crores as of March 31, 2022 to ₹35,498.55 crores, as of March 31, 2024. As on September 30, 2024, our AUM stands at ₹ 37,098.39 crores. As of March 31, 2024 and September 30, 2024, our Gross NPA expressed as a percentage of our AUM was 1.32% and 1.45%, respectively, and our Net NPA expressed as a percentage of our AUM was 1.02% and 1.14%, respectively. We have a widespread network of 387 branches in 18 states and 2 union territories as of September 30, 2024.
Company’s focus states include Delhi NCR, Gujarat, Andhra Pradesh, Telangana, Madhya Pradesh, Karnataka, Rajasthan, Maharashtra and Tamil Nadu. As a technology-driven housing finance Company, the Company endeavours to make customer experience as seamless as possible. The approach has always been digital first and has made the entire life cycle of housing loans i.e., from origination to closure, completely digitised. The Company have also adopted technology in all our other business processes including customer service, collections, underwriting and monitoring asset quality. With strong in-house digital capabilities and efficient processes across business functions, we provide enhanced customer experience, enhanced transparency and sustainable growth.
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