ICICI's marketing plans for home loans

By Our Staff Reporter

CALCUTTA, APRIl 13. ICICI plans to grab a major slice of the housing loan business through balance transfer offers. Extensively used in the credit card market, balance transfer is yet to be introduced as a major growth vehicle in the housing finance sector. The loans are offered by ICICI Home Finance and marketed by ICICI. The subsidiary has recently applied for National Housing Bank refinance.

Addressing a press conference here today, Mr. Atul Jog, business head (mortgages), said a sum of Rs. 900 crores was sanctioned through personal financial services (ICICI-PFS) within a year of launching. Home loans contributed a maximum of Rs. 378 crores in the total amount sanctioned followed by auto finance.

While the business targets for the current fiscal are yet to be finalised, ICICI is all set to market its housing loans more aggressively. It plans to expand its branches mostly in western India.

New offices would be opened mostly in smaller cities and towns where real estate prices are comparatively low. ``This would further bring down our present average finance per customer from the current level of Rs. 4.5 lakhs,'' Mr. Jog said The company today announced the introduction of a 30 year repayment plan. The present ceiling in the industry is 20 years. Keeping with the recent trends, interest rates also have been revised downwards.

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