The Housing Finance industry comes under Financial group. It’s a commodity type industry.

Industry Strengths

Strong and growing demand for housing loans in cities and small towns
Emerging demand for home repair and extensions
Ability of the companies to offer property related services like consulting, brokerage, insurance etc to augment non fund based service income
Availability of credit rating services to evaluate the credit rating of prospective borrowers

Industry Weakness

Competition from commercial banks who have entered this business in a large way and who have access to cheaper funds
Negatively impacted by increase in interest rates as cost of funds increases
Risk of loans becoming NPA if the interest rate increases to the extent that borrower cannot service his loans or borrower losses his job and has no income to service his loan

Growth Drivers

Domestic economic growth leading to growth in economic activity and growth in income
Rise in disposable income and desire to lead a good life
Rapid urbanization leading to demand for housing
Breakup of joint family system and emergence of nuclear family system leading to demand in housing
Ability of young professionals, especially double income families can borrow easily
Government incentives for housing loans
Government laws which have strengthend the hands of lenders against defaulters

Indiabulls Housing Finance is one of the largest housing finance companies in India with AUM of >INR1tn. IHFL offers a broad suite of lending and other financial products to target client base of middle and upper-middle income individuals and small- and medium-sized enterprises, or SMEs. It has presence across 200+ locations across India and in house sales team of sourcing agents.

Segments and Products

It is engaged in the business to provide finance and to undertake all lending and finance to person or persons, co-operative society, association of persons, body of individuals, companies, institutions, firms, builders, developers, contractors, tenants and others either at interest or without and/or with or without any security for construction, erection, building, repair, remodeling, development, improvement, purchase of houses, apartments, flats, bungalows, rooms, huts and townships, among others.