Housing finance is a relatively new concept in India comparing to other financial services that are widely available in the country since a long year back. However, the speedy development in housing and various housing activities have understandably led to the growth of Indian housing finance market. As a result, a number of players have barged into the market. Here, find the list of top 10 housing finance companies in India.
It was in the year 1970 when Housing and Urban Development Corporation (HUDCO) was established to finance various housing and urban infrastructure activities. However, the Housing Development Finance Corporation (HDFC) was the India's first private sector housing finance company came into existence in 1977. Since then, the housing finance in India has been flying high. It's expected to grow at a growth rate of 36% in the coming years.
As the commercial banks started expanding housing-related disbursements, the market share also started growing up. In 2000, the Indian housing finance companies accounted for 70 per cent of the disbursements, while their collective share decreased to 36 per cent within 5 years. In 2005, banks accounted for 64 per cent of the disbursements.
List of Top Housing Finance Companies in India
Find below a list of some of the top housing finance companies of India:
- Housing Development Finance Corporation Limited (HDFC)
Housing Development Finance Corporation Ltd (HDFC) is one of the leaders in the Indian housing finance market with almost 37% market share. Serves more than 26 lakh customers across the nation, HDFC also offers customized solutions that fit to the need of the customer. In the FY 2008, it registered a net profit of Rs. 2,282.54 crore. It also registered a net profit of Rs. 663.94 crore in the quarter ended September 30, 2009.
- State Bank of India Home Finance (SBI)
State Bank of India is another major player in the Indian housing finance market with almost 16% of the market share. The SBI Housing Loan schemes are specifically designed to meet the varied requirements of the customers. It offers home loan for various purposes including new house/flat, purchase of land, renovation/alteration/extension of existing house/flat etc. SBI Home Finance registered a net profit of Rs. 24.63 crore in the year ended March 31, 2009.
- Housing Urban Development Corporation (HUDCO)
Through its ‘Niwas’ scheme, HUDCO offers housing loans for the buying/constructing house/flat. Loans are also offered for renovation/extension/alteration of existing house/flat. In the last financial year (ended on March 31, 2009), HUDCO registered a net profit of Rs. 400.99 crore, comparing to Rs. 373.73 crore of the previous year.
- LIC Housing Finance Limited
LIC Housing Finance is another major player in housing finance sector in India with almost 13% of market share. Promoted by Life Insurance Corporation of India, LICHFL has an extensive distribution network with a strong brand presence. Recently, the company has been awarded “Consumer Superbrand 2009/10 Status” by Superbrands Council. In the last financial year (ended on March 31, 2009), LICHFL earned a net profit of Rs. 387.19 crore, comparing to Rs. 279.14 in the previous FY. It also registered a net profit of Rs. 171.25 crore in the quarter ended on September 30, 2009.
- ICICI Home Finance Company Limited
ICICI is a leading housing finance company in India with almost 6% market share. It offers various types of home loans for its customers which may have tenure up to 20 years. The home loan interest rate is connected to the ICICI Bank Floating Reference Rate (FRR/PLR). Here it can be added here that, the PLR has been reduced to 14.75% from its previous rate of 15.25% since June 4, 2009. As on January 23, 2009, ICICI HFC has 1416 branches with an asset of Rs. 3,74,410 crore. As on December 31, 2008, the company has a net worth of Rs. 50,035 crore.
- IDBI Homefinance Limited (IHFL)
Founded in January 10, 2000, IDBI Homefinance Limited has become one of the major players in the Indian housing finance market. It offers a range of housing financial solutions to its customers including Individual Home Loans, Home Improvement Loan, Home Extension Loan, Home Loans for NRIs, Plot Loans, and Loan Against Home etc. In the financial year 2008-09, IDBI Homefinance Limited registered a profit of Rs. 3209.93 lakhs, comparing to a net profit of Rs. 2988.62 lakhs in the previous financial year.
- PNB Housing Finance Limited
PNB Housing Finance Limited offers a wide range of loans for purchase/construction of property to resident Indians as well as NRIs. It also offers housing finance for renovations, repairs and enhancement of immovable properties. In the last financial year (ended on March 31, 2009), PNB Housing Finance Limited registered a net profit of Rs. 534.1 million, which is 32% more than the net profit of its previous financial year of Rs. 405.9 million.
- Dewan Housing Finance Corporation Limited (DHFL)
Dewan Housing Finance Corporation Limited is one of the largest housing finance solution providers in India with an extensive network of 74 branches, 78 service centers and 35 camps spread across the nation. The company registered a net profit of Rs. 8,631.83 lacs in 2008-09, comparing to a net profit of Rs. 8,257.74 lacs in the previous financial year. In the quarter ended on September 30, 2009, DHFL earned a profit (after tax) of Rs. 3,751.09 lacs.
- GIC Housing Finance Limited
GIC Housing Finance Limited, one of the leading housing finance companies in India, was initially established as ‘GIC Grih Vitta Limited’ on December 12, 1989. Promoted by General Insurance Corporation of India, GIC Housing Finance Limited offers extensive range of housing finance solutions to its customers through its wide network of 24 Business Centers and 3 Collection Centers across the nation. In the financial year 2008-09, GIC Housing Finance Limited registered a profit (after tax) of Rs. 5714 lakhs. Furthermore, in the last quarter (ended September 30, 2009), it registered a profit of Rs. 1713 lakhs.
- Can Fin Homes Limited (CFHL)
Can Fin Homes Limited is another big player in the Indian housing finance market with an extensive network of 40 branches. It is also the first and one of the biggest bank-sponsored (sponsored by Canara Bank) housing finance companies in India. In the financial year 2008-09, Can Fin Homes Limited registered a net profit of Rs. 3,152.9 lakhs. It also registered a net profit of Rs. 790.9 lakh in the quarter ended on June 30, 2009.