SMFG Grihashakti, a leading name in India’s affordable housing finance sector, has taken a major leap forward by securing a ₹300 crore long-term loan from the National Housing Bank (NHB). This milestone funding marks the beginning of a strategic partnership aimed at expanding housing loan access to underserved and semi-urban populations across the country.
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A Major Boost to Housing Finance in India
This transaction is SMFG Grihashakti’s maiden long-term funding from NHB, signaling a new chapter in its growth journey. The funds will enable the company to enhance its lending capacity, widen its geographic footprint, and accelerate its mission of making affordable housing a reality for millions of Indians.
“We endeavor to bring affordable housing finance solutions to the vast population and fulfill the dream of home ownership across the country,” said Deepak Patkar, MD & CEO of SMFG Grihashakti. “This ₹300 crore loan demonstrates NHB’s trust in our business model and commitment to financial sustainability.”
Strong Growth Backed by Robust Financials
As of December 31, 2023, SMFG Grihashakti reported Assets Under Management (AUM) of ₹8,028 crore, reflecting a 37% CAGR over the last two years. Alongside this remarkable growth, the company has also achieved a significant improvement in asset quality.
With a presence in key housing segments, SMFG Grihashakti provides a wide range of financial products, including:
- Home loans
- Home improvement and construction loans
- Property purchase and extension loans
- Loans against property
- Commercial property loans
- Construction finance for mid-tier developers
These offerings are supported by a strong risk management framework, a nationwide distribution network, and robust parent group backing.
Expanding Reach with Strategic Investments
The company has ambitious expansion plans and aims to double its branch network to 300 by March 2025, focusing on high-growth states like Telangana, Maharashtra, and Gujarat.
Key Benefits for Borrowers:
- Affordable Home Loans: Starting at 9.5% p.a., with tenures up to 30 years
- Quick Disbursal: Loans processed within 72 hours of approval
- Digital Origination: New systems in place for faster, paperless processing
- PMAY Subsidy Eligibility: Borrowers can avail subsidies and tax benefits under Sections 80C and 24(b)
- Women-Centric Schemes: Preferential rates for women applicants
- Flexible Loan Amounts: From ₹5 lakh to ₹5 crore, catering to a broad spectrum of needs
Supporting Underserved Segments
With this NHB funding, SMFG Grihashakti is better equipped to serve lower- and middle-income households, particularly in semi-urban and rural areas where formal credit access is often limited.
The company’s focus aligns with the government’s push for ‘Housing for All’, leveraging both private capital and public schemes like the Pradhan Mantri Awas Yojana (PMAY).
What types of loans does SMFG Grihashakti offer?
SMFG offers:
- Home loans
- Home improvement loans
- Home construction and extension loans
- Loans against property (LAP)
- Commercial property loans
- Project finance for developers
Conclusion
The ₹300 crore NHB funding is more than just a financial boost—it’s a strong vote of confidence in SMFG Grihashakti’s vision and its role in shaping India’s affordable housing ecosystem. As the company continues to grow, it remains committed to providing flexible, fast, and inclusive home loan solutions for every Indian aspiring to own a home.
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Frequently Asked Questions
Q. SMFG Grihashakti full form
A. SMFG Grihashakti stands for Sumitomo Mitsui Financial Group India Home Finance Company Limited. It is a subsidiary of SMFG India Credit Company Ltd.
Q. What is SMFG Grihashakti?
A. SMFG Grihashakti is a leading housing finance company in India focused on providing affordable home loans and property loans to low and middle-income segments.
Q. Who provided the ₹300 crore funding to SMFG Grihashakti?
A. The ₹300 crore funding was provided by the National Housing Bank (NHB) as a long-tenor loan to support affordable housing finance.
Q. How will this ₹300 crore NHB loan be used?
A. The funds will be used to expand SMFG Grihashakti’s loan portfolio, improve housing finance access in underserved areas, and support new branch expansions across India.
Q. What is the significance of this NHB funding for SMFG Grihashakti?
A. This is SMFG Grihashakti’s first long-term loan from NHB, which validates its financial sustainability and supports its mission to empower homebuyers in semi-urban and rural India.