HDFC's managing director, DM Satwalaker, told The Financial Express that "Since we are new to consumer finance, the first few years of financing would only be open to a few of our borrowers who would be selected at the discretion of the board. The total disbural would be kept at Rs 200 to Rs 250 crore for the first year of operations."

Ruling out any possiblity of a tie-up with other consumer finance companies Satwalaker said: "We are not looking at any tie-ups at any stage of operations. We would like to operate and devise the schemes ourselves."

At the annual general meeting of HDFC, the board passed a special resolution to branch out into consumer finance and urban infrastructure financing.

The corporation would bein the business of providing personal finance whether by way of loans or otherwise for various purposes including for acquisition of consumer products of all types. This would include financing options for consumer durables, equipment and machinery, vehicles, and home appliances. The consumer finance arm would also provide finance for furniture and fixtures, furnishings and air conditioners.

"As the development of infrastructure is as important as development of a housing project, HDFC will look at funding local development bodies," Satwalakar said.

The financing of urban infrastructure would be to provide assistance by way of a loan covering both long-term and working capital finance, over-drafts, cash credit, and refinance as also providing gurarantees and indemnities to institutions, corporate bodies, associaions or authority engaged in sewage treatement, township planning and other urban-developement infrastructure activities.