Reliance Capital gets NHB nod for housing finance company
To begin with R-Cap will focus on giving housing loans in metros and as business grows, it will go to smaller cities. Home loan: Some documents you need
By Paramita Chatterjee, ET Bureau |
NEW DELHI: Anil Ambani-promoted Reliance Capital (R-Cap) has got the approval from National Housing Bank (NHB) for setting up a separate housing finance company. R-Cap is already into the mortgage business through its wholly-owned consumer finance arm Reliance Consumer Finance.
Now it will hive off this business into a separate housing finance company.
The diversified financial services firm has also got the nod from the RBI for separating the housing finance arm from its existing consumer finance business.
With all regulatory approvals in place, R-Cap will now be able to get special benefits, such as refinance, repossession and lower capital adequacy. R-Cap will also get to raise funds through external commercial borrowings.
The approval will help us focus on both the businesses separately. Also, the approval to operate as a housing finance business will help us in getting loans at a cheaper rate, Reliance Capital Chief Executive Officer, Sam Ghosh told ET.
To begin with R-Cap will focus on giving housing loans in metros and as business grows, it will go to smaller cities.
R-Cap is the financial arm of the Reliance Anil Dhirubhai Ambani Group (ADAG) and has interests in asset management, insurance, stock brokerage, commodity exchanges among other activities in the financial services.
In the consumer finance space, the company offers personal loans, auto loans and business loans among others.
Now it will hive off this business into a separate housing finance company.
The diversified financial services firm has also got the nod from the RBI for separating the housing finance arm from its existing consumer finance business.
With all regulatory approvals in place, R-Cap will now be able to get special benefits, such as refinance, repossession and lower capital adequacy. R-Cap will also get to raise funds through external commercial borrowings.
The approval will help us focus on both the businesses separately. Also, the approval to operate as a housing finance business will help us in getting loans at a cheaper rate, Reliance Capital Chief Executive Officer, Sam Ghosh told ET.
To begin with R-Cap will focus on giving housing loans in metros and as business grows, it will go to smaller cities.
R-Cap is the financial arm of the Reliance Anil Dhirubhai Ambani Group (ADAG) and has interests in asset management, insurance, stock brokerage, commodity exchanges among other activities in the financial services.
In the consumer finance space, the company offers personal loans, auto loans and business loans among others.
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