DMI Housing Finance Pvt Ltd, a subsidiary of Delhi-based non-banking finance company DMI Finance Pvt Ltd, has started its retail housing finance business, the company said in a release.
DMI Housing Finance is expanding its business of providing mortgages and Loan Against Properties (LAPs) to home buyers and owners while DMI Finance will continue to focus on providing wholesale corporate loans across India.
Incorporated in 2011, DMI Housing Finance had already secured a housing finance licence from the National Housing Board.
“We are very excited about the retail mortgage business in India. Total mortgage debt remains lower than 10 per cent of GDP while in the US it is closer to 80 per cent of GDP. A youthful population, rapid urbanisation, regular income growth and a very supportive government is creating a huge opportunity for both borrowers and lenders," said Yuvraj Singh, co-founder and joint-MD, DMI Finance.
“Household wealth in India is almost $4 trillion of which about $3 trillion is locked in real estate. Housing finance is an effective way to unlock this wealth for more productive use. DMI Housing Finance will play its part in this very important function with an initial focus on North India. We expect to continually expand our product offering to meet the varying needs of home buyers and owners," said Shivashish Chatterjee, co-founder and joint-MD, DMI Finance.
DMI Finance, founded by former Citigroup executives Shivashish Chatterjee and Yuvraj C Singh in 2008, specialises in secured lending and also made an investment in the asset reconstruction business by buying an equity stake in the Alchemist Asset Reconstruction Company last year.
In January 2013, the Burman Family, promoters of Dabur India besides other ventures including private equity players, had invested an undisclosed amount in DMI Finance to pick a strategic stake.
(Edited by Joby Puthuparampil Johnson)