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Riding the growth wave: Top 4 affordable housing finance companies to watch in 2025
Affordable housing finance companies (AHFCs) are outperforming other non-banking financial companies, driven by lower borrowing costs and rising demand. Policy support and low mortgage penetration in mid- and low-income segments are expected to fuel further growth. While competition and rising costs pose challenges, AHFCs are poised to capture a significant share of the affordable housing finance market.
Sammaan Capital raises $300 million via overseas bond issue
Sammaan Capital (formerly Indiabulls Housing) has successfully raised $300 million through a three-year bond issuance to overseas investors at 8.95%. This marks their first international issuance under the new brand and aims to diversify their funding base, targeting 10% from international sources. The company plans further overseas borrowing to reach 10-15% within the next year.
Centrum Capital signs agreement to sell Affordable Housing Finance Business to Weaver Services
The company’s valuation is approximately Rs 800 crore and Weaver Services is acquiring a 75% stake, with the acquisition cost at approximately Rs 600 crore.
Housing finance companies struggle as mortgage rate war intensifies
Housing finance companies face challenges. Public sector banks aggressively price mortgage rates. This squeezes HFC margins. Loan disbursals grow, but AUM doesn't keep pace. Borrowers are shifting loans. Bajaj Housing Finance saw a profit decline. LIC Housing Finance also feels the rate war. Competition is intense, impacting even large players. Margin pressure is expected to continue for a while.
Affordable housing outperformance signals BoP demand revival
While overall consumption shows signs of fatigue, affordable housing finance companies are experiencing robust growth, outpacing larger peers. Smaller lenders, focusing on smaller towns, have seen asset expansions ranging from 16% to 34%. This performance stands out due to the relative price inelasticity associated with affordable home buyers, signaling potential demand revival.
P2P lenders' RBI plea; GenAI dreams draw dollars
Happy Tuesday! P2P lenders are hoping for some respite from India’s central bank amid regulatory squeeze. This and more in today's ETtech Morning Dispatch.
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Fintech lender Zype raises Rs 90 crore in round led by Japanese VC fund Unleash Capital Partners
Existing investor Xponentia Capital also participated in the funding round. The new round of fundraise should be enough for the company to grow for the next 12-18 months without the need for a fresh equity round, said Yogi Sadana, founder of Zype.
Can Cholamandalam Investment maintain its AUM growth target in a challenging market? CFO Arul Selvan answers
Cholamandalam Investment reports vehicle finance disbursement grew by 7%. Assets under management increased by 18%. Home loan AUM saw a 33% year-on-year rise. The company maintains its AUM growth target of 20-25% for the full year. Borrowing plans involve raising Rs 7,000-10,000 crore monthly. Gold loan business expands to 120 branches by Q2.
Arcil IPO: Avenue, SBI to reduce stake, GIC affiliate to exit
Arcil Ltd, India's first bad loan aggregator, is set for an IPO with existing shareholders like Avenue Capital, SBI, GIC's Lathe Investment, and Federal Bank planning to sell 10.54 crore shares. Avenue Capital will dilute its stake, while Lathe Investment will exit completely. Arcil, the second largest ARC in India, reported a profit of Rs 355.31 crore in March 2025.
AHFC loans to increase to Rs 2.5 lakh cr by FY28-end: ICRA
ICRA projects significant growth for affordable housing finance companies. Their assets under management are expected to reach Rs 2.5 lakh crore in three years. The mortgage portfolio of non-bank lenders will likely touch Rs 20 lakh crore by March 2028. Retail mortgage loan growth will be driven by demand and limited credit options.
HDFC merger continues to remain a drag on bank credit growth
As the banking landscape evolves post-merger, the focus remains on balancing growth while ensuring stability within the financial system. The coming months will be crucial in determining how HDFC Bank navigates these challenges and capitalises on emerging opportunities in the market.
EQT completes acquisition of Niwas Housing Finance
Niwas Housing Finance, formerly known as IndoStar Home Finance, is an affordable housing finance company with Rs 3000 crore ($ 359 million) in assets under management that has supported over 47,000 low income homeowners and small businesses across India
HFCs may log modest Q1 growth, but rate cut to weigh on margins
Housing finance companies (HFCs) are anticipated to reveal modest earnings for the June quarter, supported by an 8% year-on-year rise in loan disbursals. However, margins are expected to face pressure from bank competition and rate cuts. Provisioning costs might increase due to slower recoveries, potentially leading to flat profit growth after tax.
IIFL Home Finance gets funding from Asian Infrastructure Investment Bank
IIFL Home Finance secured a $100 million loan from the Asian Infrastructure Investment Bank. The funding will support affordable housing and green building projects in India. The loan has a five-year term with an 8.58% interest rate. This investment aims to boost sustainable infrastructure and address the housing gap for low-income families.
Hero FinCorp plans first offshore bond issuance to raise $300 million
Hero FinCorp is considering its inaugural offshore bond issuance, potentially raising up to $300 million through a dollar-denominated bond. The NBFC, part of the Hero Group, recently conducted roadshows in Hong Kong and Singapore to gauge investor interest.
HSBC initiates coverage on Bajaj Housing with a ‘reduce’ rating, predicts 27% downside
HSBC initiated coverage on Bajaj Housing Finance with a 'reduce' rating, targeting Rs 110, citing earnings slowdown and concerns over high valuations compared to peers.
Piramal Capital raises $100-million social loan
Piramal Capital & Housing Finance raises $100 million social loan pre-funded by Standard Chartered Bank. The loan, benchmarked to SOFR, will support affordable housing, MSME business loans, and other social causes. The lender aims for 15% AUM growth in FY25 and plans to expand the retail business.
India Shelter Finance is well placed to benefit from affordable housing opportunity
The gross non-performing asset (GNPA) ratio fell to 1.1% in FY23 from 2.1% in the previous year. The return on asset (RoA) was 4.1% in FY23.
NBFCs likely to see assets growth moderating to 16-18 pc in FY24: CRISIL
India's Non-Banking Financial Companies (NBFCs) are expected to see moderate growth of 16-18% in the current fiscal due to slower expansion on unsecured retail loans due to recent regulatory measures issued by the Reserve Bank of India. Assets Under Management (AUM) of NBFCs are set to log a healthy 14-17% growth next fiscal, driven by continued strong credit demand across retail loan segments.
Gold loan led Capri Global NIM growth to 5-quarter high: Rajesh Sharma
"We believe that election is a very big event and big festival in one way and a lot of spending happens in the rural side and we have seen historically that whenever Lok Sabha election happens, the credit demand goes up. Even the collection efficiency dramatically improves. An election year is a good year for the MSME and housing segments as well. So the election will not have any negative impact, it will have a positive impact as such."
NBFCs turn to newer asset classes in quest for returns
Focus shifts from home and vehicle finance, the traditional mainstays, to unsecured and MSME loans in quest for returns. Now, stronger balance sheets with higher provisioning and lower leverage, receding asset-quality concerns, and steadily normalising funding access provide NBFCs a strong foundation to boost growth as credit demand piggybacks the ongoing economic rebound.
Indian NBFCs with strong balance sheets have muscle power to lift assets under management, says CRISIL
"There are more tailwinds than headwinds," Crisil senior director Krishnan Sitaraman said. He said that stronger balance sheets with higher capitalisation and higher provision buffers, along with receding asset-quality concerns have put NBFCs on a solid foundation to capitalise on credit demand.
HDFC posts 11% rise in Q3 net on traction in individual loans
Housing Development Finance Corp Ltd (HDFC), India's largest private-sector mortgage finance company, said its net profit increased 11% mainly due to continued demand for home loans from individuals. Net profit increased to ₹3,261 crore in the quarter ended December 2021 from ₹2,926 crore in December 2020.
SBI crosses Rs 5 trillion-mark in home loan business
"This extraordinary feat is a testament to customers' continuous trust in the bank. We feel that combining technology with personalised service is the key in the current scenario," the bank's chairman Dinesh Khara said.
HDFC Q3 takeaways: Bad loans in check, collection efficiency grows
The largest mortgage lender in India said its profit figure that came comparatively lower for the third quarter is not comparable due to one-time gain last year.
Manappuram Finance Q3 results: Net profit rises 17% to Rs 483 crore
Total consolidated operating income during the quarter stood at Rs 1643.81 crore, a growth of 14.46 per cent over Rs 1436.19 crore reported in Q3 of the previous fiscal.
NBFC assets may de-grow 1-3% in FY21 as fresh disbursements drop sharply: Crisil
The rating agency said "assets under management of non-banking financial companies (NBFCs) are expected to de-grow 1-3 per cent in the current fiscal as fresh disbursements drop sharply".
IndoStar to buy CV finance business of IIFL Finance
Since 2015, IndoStar has been building its retail lending business which accelerated last year with the set-up of CV finance and Affordable Housing Finance businesses.
Expect 20% growth in gold loan portfolio: George Alexander Muthoot, Muthoot Finance
“We see a better pickup in the affordable home loan and microfinance businesses.”
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