Star Housing Finance to offer customized rural centric home loan products; Stock climbs 5%

Star HFL expects a minimum of 10-15% of business through these loans.

Nov 25, 2021 09:11 IST India Infoline News Service

Star Housing Finance Limited (Star HFL) has launched differentiated loan products customized for the rural consumer, which would meet their specific housing requirements. The Company has launched products under their “Star Gram Griha Loans” umbrella.
  • Star Gram Pakka Ghar Loan: Financing for construction of a pucca roof for an existing structure.
  • Star Gram Nayi Manzil Griha Loan: Financing for construction of an additional floor to an existing house to accommodate a larger family.
  • Star Gram Vikas Griha Loan: For self-employed individuals towards financing for construction of a space that would be used for business purposes
  • Star Gram Nayi Peedhi Griha Loan: Financing for construction of a room in an existing house to ensure the child gets private space and comfort for studying
  • Star Gram Sulabh Swachhata Griha Loan: Financing towards construction of toilet in an existing house
Speaking on the launch, Ashish Jain, MD of Star HFL said, “Post exhaustive research done by our on ground staff across our operational geographies, we have come up with such specific home loan products.

We are probably the first housing finance company in India to offer customized rural centric home loan products specifically catering to the demand of reverse migrated population and the small time self employed individuals. Our differentiated offering aims to provide a fresh outlook while addressing the real issues faced by households in rural areas, which has predominantly noticed only plain vanilla housing loan products.”

He concluded that Star HFL expects a minimum of 10-15% of business through these loans and accordingly sees providing housing finance assistance to more than 1000 families through these products over the next 36 months.

As per regulatory filing, Rural Housing has seen an uptick in demand fueled by the migration from small hamlets to semi urban areas and reverse migration from city centers to these locations. It has been estimated that approx.60-75 million individuals have reverse migrated back to their natives during the pandemic and out of these at least 25% continue to start their life cycle from their respective origins. This has augured well for housing sector as it has contributed to an incremental demand of 4-5 million units.

At around 9:54 AM, Star Housing Finance was trading at Rs93 per piece higher by 5.14% on the BSE.

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