Wave group enters housing finance sector
The group targets to disburse Rs1,000 crore loans in the next five years
New Delhi: Wave group, which is into liquor, realty, sugar and cinema businesses, on Wednesday announced its foray into the housing finance sector and is targeting to disburse Rs1,000 crore loans in the next five years.
Wave Group’s new venture — New Habitat Housing Finance and Development Ltd (NHHFDL) — will start with an equity capital of Rs12 crore infused by the promoters and the same would be raised to Rs100 crore in the next three years.
“Wave group has entered into the housing finance as it synergies with our existing real estate business. We propose to provide attractive and customer-friendly schemes to our target group customers in both formal and informal segments,” Wave Group managing director R.K. Panpalia told reporters in New Delhi.
NHHFDL CEO and whole-time director Rakesh Kapoor said the company has approval from the National Housing bank (NHB) to start the business.
“In the present scenario, there has been a gap in housing demand and availability of housing finance. To bridge this gap, Wave group is venturing into the housing finance sector,” he added.
Stating that the company would mainly focus on retail housing finance segment, he said: “We will raise short-term and long-term funds. It will be from the public sector banks and through issue of non-convertible debentures (NCDs)”.
Besides home loans, the company would offer home construction/improvement loans, loan against properties and loan to developers among others.
“In the beginning, we cannot be competitive with the banks in the interest rates. Therefore, we will target those people who can pay higher interest rates like self-employed entrepreneurs,” Kapoor said.
Asked about the indicative interest rate at which it will finance, he said it would be in the range interest rates could be in the range of 11-13%.
“At present we have one office in Noida which will cater to the Delhi-NCR. In the next six months, we will open 5 more offices in north India,” Kapoor said, adding that the company would have pan-India presence in the next five years.
Privately held Wave Group is developing housing and commercial projects in Noida, Ghaziabad and Mohali.