GE Money arm Wizard Home Loans to tap Indian mortgage market
By Our Corporate Bureau | 20 Sep 2007
Mumbai: Australia-based Wizard Home Loans, a subsidiary of General Electric Co's retail finance arm GE Money, will invest $200 million in India by 2011.
Wizard expects to double its India business annually over the next three years, aiming to be among the top five mortgage companies in the country in 5-10 years, chairman Mark Bouris said.
"After 3-4 years, we expect 20-30 per cent loan growth. We want to among the top five players in 5-10 years," he said.
"We are expecting a loan book of $2 billion by 2011," Bouris said, adding the company would open 250 branches in four years.
Wizard, which will initially offer its products through GE Money's Indian arm, has applied to the regulator for a separate licence.
Wizard plans to lend at 9.99 per cent, at least 50-175 basis points lower than that offered by major Indian lenders like State Bank of India, ICICI Bank and HDFC.
India's home loan market has been growing at over 25 per cent annually since 2000, and the total home loans outstanding with banks and housing finance companies stood at Rs 230,000 crore till May 2007, according to data published by the Reserve Bank of India.
Even a 20 per cent home loan growth is still very high for any asset class, Bouris said .