"In the present scenario, there has been a gap in housing demand and availability of housing finance. To bridge this gap, Wave group is venturing into the housing finance sector," NHHFDL CEO and whole-time director Rakesh Kapoor said.
The focus of the company will be on the retail housing finance segment, Kapoor added. "We will raise short-term and long-term funds. It will be from the public sector banks and through issue of non-convertible debentures (NCDs)", he said.
The company has got an approval from the National Housing bank (NHB) to start the business. The group currently has interests in liquor, realty, sugar and cinema.
NHHFDL will be starting its business with an equity capital of Rs 12 crore; the company plans to raise it to Rs 100 crore in the next three years.
Besides home loans, the company would offer home construction/improvement loans, loans against properties and loans to developers, among others.
"In the beginning, we cannot be competitive with the banks in the interest rates. Therefore, we will target those people who can pay higher interest rates like self-employed entrepreneurs," Kapoor said.