Tata group re-enters the home finance biz with Tata Capital Housing Finance

After a gap of six years, the Tata group has re-entered the home finance business. Tata Capital Housing Finance a wholly owned subsidiary of Tata Capital has recieved the certificate of registeration from the National Housing Bank to commence business as a housing finance company.

The new company plans to offer both fixed and floating interest rates. Praveen P Kadle MD, Tata Capital said that interest rate on the loans would be competitive and will meet the benchmarks of the other players in the industry.

The company is mainly targeting Tier II and Tier III cities and will target both retail and commercial loans. In 2003 Tata Finance sold its entire stake in Tata Homefinance to IDBI. The new company is also open to inorganic growth. "If valuations make sense, we will look at inorganic growth," said Mr Kadle. It plans to set up around 35 branches initially.