Muthoot Pappachan Group is planning to grow its housing finance business to Rs 300 crore by March 2014. Muthoot, hitherto, has been known more for its gold loan lending business. The group started home loan business in July 2011 and had a book of Rs 105 crore as of March 2013.
This would grow to Rs 200 crore by September and Rs 300 crore by March 2014, the company said recently. The company stated that it has been facing troubles ever since the regulatory moves on flagship gold loans business, started housing loans to increase its product bouquet.
The company lends between Rs 3 and 15 lakh, with an average loan size at Rs 6.3 lakh. It generally targets projects in the vicinity of a big city or a town.
Country-wide, Muthoot is present in 17 cities across seven states.