GRUH Finance: Home Loans evenfor the One without Formal Income-Proof Documents to Justify Repayment

Sudhin Choksey, Managing Director

Sudhin Choksey

Managing Director

The number of Indians turning entrepreneurs is on the rise. But when it comes to getting home loans from financial institutions, the self - employed do not have it easy. In most cases, these loans go through greater scrutiny before being granted and may have more terms and conditions attached. Lenders only grow suspicious while dealing with a loan applicant who is self-employed.

GRUH Finance-a subsidiary of HDFC Ltd.has proved to be a boon for them, as it offers loans for all segments of the population including self-employed individuals who do not possess formal income-proof documents to justify the repayment. The company provides loans for purchase, construction, repair& renovation, and extension of dwelling units.

Having dispersed Rs.23,000 crore to help more than 3,60,000 customers to build their dream home in India, the company that pioneered the financial sector in India in 1988 stands gigantic today with a whopping revenue of Rs.416 crore, which speaks volumes about its clients’ success. This success looks even more impressive considering the fact that
approximately 50 percent of its funds have been dispersed to families residing in areas having population of 50,000 or below (1991census) and the average incremental ticket size is Rs.8.86 lakh with an average property value financed of Rs.13.68 lakh.

Apart from the rural populace, GRUH provides home loans to NRIs who are out of the country on work visas for purchase/ construction of a dwelling unit

Home Loan for All

With wide network of more than 185 branch offices spread across 11 states (Gujarat, Maharashtra, Rajasthan, Madhya Pradesh, Karnataka, Chhattisgarh, Tamil Nadu, and Uttar Pradesh among others), GRUH caters to a wide segment of the population helping people build dream homes and managing their saving by providing safe and secure saving options. Present up to the taluka level, the company can offer loans in the interior pockets of the country as well. In association with Housing Finance Company (HFC)and Pradhan Mantri Awas Yojana(PMAY), it operates in the low-income group segment and has supported around 10,000 families falling under the Credit Linked Subsidy Scheme (CLSS). The company that offers home loan for all helps people with loan for purchase of office premises (professional)and loan against existing residential properties
(individuals) as well. Apart from the rural populace, GRUH provides home loans to NRIs who are out of the country on work visas for purchase/construction of a dwelling unit.

Today most of the banks are moving towards MCLR based pricing, thus interest spread has become a major concerns for HFCs. But unlike others, GRUH works on credit score base pricing model, which charges customers based on their individual credit score. “The loan rates for salaried customers’ starts from 8.35 percent linked to the individual credit rating of the customer. As we provide competitive rates, customers who are having inferior rating can also be offered loans albeit at higher rates of interest,” asserts Sudhin Choksey, Managing Director, GRUH Finance. Adopting the best of the technology to offer loans quickly, GRUH has built its own in-house ERP that covers CRM, LOS, LMS, BI with integrated Accounts package and HR package. Additionally, it provides Suraksha, Suvidha, Sajavat housing loans and Samruddhi NRP loans, thanks to its decentralized approach every thing seems to be just a finger-snap away.

This Ahmedabad-based company believes in empowering its employees,hence provides them with in-house & external training, induction training modules(fresher), refresher courses (existing employees) and holds dedicated training team that offers training around the year. “We have received various awards (one among them is FE CFO of the Year Award 2017) for our transparency and data being shared with investors and stake holders,” concludes Sudhin.