SHFL, a subsidiary of Sundaram Finance, plans to venture into the affordable housing sector, targeting Tier 2 and Tier 3 towns in Tamil Nadu and Andhra Pradesh. This decision is in accordance with the government's "housing for all" initiative. The company intends to open around 10 branches in smaller towns and hire 50–75 employees exclusively for affordable housing by March 2024. With assets under management of Rs 11,200 crore and a net profit of Rs 215 crore in the last fiscal year, SHFL aims to contribute to housing accessibility while expanding its customer base.
Sundaram Home Finance (SHFL), a subsidiary of Sundaram Finance, is poised to make its entrance into the burgeoning affordable home loan market, aligning its strategy with the government's "housing for all" initiative. The company is strategically targeting tier 2 and tier 3 towns within Tamil Nadu and Andhra Pradesh for its expansion into affordable housing finance, extending home loans up to Rs 35 lakh to potential homeowners. The company envisions this segment as having substantial long-term growth potential.
As part of their vision, SHFL plans to inaugurate approximately 10 branches in these smaller towns, beginning with locations such as Karur, Tirupur, Guntur, and Vijayawada during the initial phase by March 2024. Additionally, they intend to onboard 50–75 professionals dedicated exclusively to the affordable housing segment to facilitate this expansion. The strategic expansion into the affordable housing sector reaffirms SHFL's unwavering commitment to broaden its customer base and actively contribute to the government's mission of enhancing housing accessibility for all.
At the close of March 2023, SHFL boasted assets under management amounting to Rs 11,200 crore. Notably, the company generated a net profit of Rs 215 crore during the previous financial year, showcasing robust financial performance. Operating as a wholly-owned subsidiary of Sundaram Finance Ltd., SHFL presents a diverse portfolio of financial products. These encompass home loans, plot loans, home improvement and extension loans, loans against property, and small business loans tailored to serve traders and small-scale businesses. The financial results for the June quarter underscored the company's strength, with SHFL registering a net profit of Rs 57 crore against disbursements totalling Rs 1,104 crore.
SHFL's strategic foray into the affordable housing segment arrives at a pivotal juncture characterized by burgeoning demand for such housing in smaller towns and cities. Several factors, including urbanization, employment opportunities, and government incentives, have propelled the growth of this market. The "housing for all" initiative has further propelled the expansion of this sector, rendering it an attractive proposition for financial institutions.
By extending its footprint to these smaller towns and actively addressing the housing needs of a broader customer base, SHFL is poised to play a pivotal role in realizing the government's vision of affordable and accessible housing solutions for all segments of society. This strategic move positions SHFL as a key player in delivering affordable housing solutions to diverse communities across Tamil Nadu and Andhra Pradesh.
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