Chennai: Sundaram Home Finance has made its foray into Karnataka market and aims to make disbursements of Rs 60 crore during the first year of its operations, under the Emerging Business segment in the state.
During the first phase of expansion, the Chennai-based company plans to set up 8-10 emerging business branches in Tier II and III towns in Karnataka, a press release said here on Tuesday.Sundaram Home Finance is a subsidiary of the non-banking finance company Sundaram Finance Ltd.
The company has over 50 branches in Tamil Nadu and Andhra Pradesh under the Emerging Business segment. Last year, the company disbursed Rs 200 crore under this category.The Emerging Business vertical of the company comprises small business loans of up to Rs 20 lakh and affordable housing finance, where the company offers loans up to Rs 40 lakh.
Commenting on the foray into Karnataka, company MD D Lakshminarayanan said, "In line with our stated intent of expanding the Emerging Business outside Tamil Nadu, we have forayed into Karnataka and are hopeful of establishing a good presence in the Tier II and III towns in the state over the next 12-18 months."
On the reasons behind entering the Karnataka market, he said, it has vast potential for affordable housing finance with the Government pushing this segment aggressively."We believe there will be a high demand for credit in the affordable housing segment and hope to tap into this growing opportunity," he said.
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