Non-banking finance company: Housing Loan Segment Accounts for 48%

The housing loan segment accounts for 48% of the book size while used and new cars contribute 20%, loans to businesses and loans against property account for 22%, business loans 8%, and personal loans 2%.

Tata Capital, the lending company of the Tata Group, has decided to focus on two particular segments to grow in an increasingly competitive market.

“We will be focusing on housing and used cars segments,“ said Mr. Govind Sankaranarayanan, chief operating officer-retail business and housing finance at Tata Capital Financial Services. The company expects the retail loan book to grow by 20% to 30% this year, said Mr. Govind Sankaranarayanan.

The figure is considerably higher than the 10.2% credit pick-up of the banking industry.

Experts say the used cars segment is evolving in India as it did in the United States a few years ago and e-commerce is helping it grow.The non-banking finance company, which has been in business for the past 7 years, has a retail book of Rs. 16,000 crore. The housing loan segment accounts for 48% of the book size while used and new cars contribute 20%, loans to businesses and loans against property account for 22%, business loans 8%, and personal loans 2%.

Mr. Govind
Sankaranarayanan

The company has launched flexible EMI options called Step-up, Step-down, Bullet and Ballooning, which will be available to borrowers on retail products like home loans, business loans, car loans and personal loans.

The company, which borrows mainly through private placements, reported a lower consolidated profit during 2013-14 due to higher credit costs.

Housing loan  48% 

Used and new cars  20%,

Loans to businesses and 

loans against property    22%

Business loans 8%

Personal loans 2%.

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