Navigating the labyrinth of housing finance can often feel overwhelming. With a plethora of companies each touting their own unique benefits, this article aims to simplify the process by providing information on India’s top 10 housing finance companies. We’ve analysed various factors such as interest rates, customer service quality, and loan processing times to compile this list.
The importance of choosing the right housing finance company cannot be overstated. It’s not just about finding a lender who’ll grant you a loan; it’s about partnering with an institution that understands your financial goals and supports you in achieving them. Therefore, knowing your options is crucial.
While housing finance plays a pivotal role in India’s economy, sectors like shipping and road transport also contribute significantly to the nation’s growth and development
In India, the housing finance market is diverse and competitive. Companies range from large-scale banks offering comprehensive services to specialised firms focusing solely on home loans. Our list will include both types – ensuring there’s something for everyone whether you’re looking for all-in-one convenience or niche expertise.
Housing Financing Industry in India
- In 2022, housing loans accounted for 11.7% of India’s GDP and are projected to increase to 13% by 2025.
- Bank loans to residential real estate rose 16% year over year to 18.058 trillion rupees as of September 30, 2022.
- Non-banking financial companies (NBFCs) saw loans rise 18.8% to 3.03 trillion rupees.
- The housing finance market is expected to expand at a compound annual growth rate (CAGR) of 20.58% during the FY 2022 – FY 2027 period.
- The India home mortgage finance market is segmented by source (Housing Finance Companies (HFCs) and Banks), by interest rate (fixed rate and floating rate), and by tenure (Upto 5 years, 6 – 10 years, 11 – 24 years, and 25 – 30 years) .
- Loan growth of 15% in the housing loan market is primarily driven by a 10% growth in the number of accounts and around 5% growth in the average ticket size.
- At the end of FY-21, the outstanding loan portfolio of home loans in India stood at ₹22.4 lakh crore, growing 12.1% since its size in FY-20.
- The market is expected to show strong growth levels, nearing 22% CAGR between 2021-2026, with the affordable housing market being a significant driver.
- India’s housing loan industry is predicted to grow twofold to $600 billion over the next five years, with an anticipated 13% CAGR.
Housing finance companies in India
- HDFC Housing Finance
- LIC Housing Finance
- Indiabulls Housing Finance
- PNB Housing Finance
- AAVAS Financiers
- L&T Housing Finance
- Motilal Oswal Home Finance
- Tata Capital Housing Finance
- Home First Finance Company India
- Can Fin Homes Limited
| Company Name | Revenue (INR Crore) |
|---|---|
| HDFC Housing Finance | 1,02,798 |
| LIC Housing Finance | 6,415 |
| Indiabulls Housing Finance | 8,983 |
| PNB Housing Finance | 1,708 |
| AAVAS Financiers | 411 |
| L&T Housing Finance | 3,223 |
| Motilal Oswal Home Finance | 707 |
| Tata Capital Housing Finance | 7,939 |
| Home First Finance Company India | 795 |
| Can Fin Homes Limited | 2,742 |
- HDFC Housing Finance
- Revenue for FY 2022: INR 1,02,798 crores
- LIC Housing Finance
- Revenue for FY 2022: INR 6,415.17 crores
- Indiabulls Housing Finance
- Revenue for FY 2022: INR 8,983.31 crores
- PNB Housing Finance
- Revenue for FY 2022: INR 1,708 crores
- AAVAS Financiers
- Revenue for FY 2022: INR 411.37 crores
- L&T Housing Finance
- Revenue for FY 2022: INR 3,223.3 crores
- Motilal Oswal Home Finance
- Revenue for FY 2022-23: INR 707 crores
- Tata Capital Housing Finance
- Gross Income for FY 2022-23: INR 7,939 crores
- Home First Finance Company India
- Total income for FY 2022: INR 795.60 crores
- Can Fin Homes Limited
- Revenue for FY 2022: INR 2,742 crores
1. HDFC Housing Finance
Boasting a strong foothold in the Indian mortgage finance industry, HDFC is a renowned name when it comes to housing finance services. In the fiscal year 2022, they reported an impressive revenue of $13.74 billion (approximately ₹1,02,798 crores).
With over 9,110 employees as of April 2023, HDFC’s robust team is dedicated to providing comprehensive housing finance solutions. Their primary offerings include home loans for new and resale properties, home improvement loans, and loans for home extensions.
Their client base consists of individual households and developers across India. The company prides itself on financing affordable smart homes that adhere to green standards. Since its inception in 1977 as a specialised housing finance institution, HDFC has financed more than 10 million housing units.
Headquartered at HDFC House in Mumbai’s Churchgate area, the company continues to lead the mortgage finance industry in India with significant market share.
Over the years, HDFC has embarked on several notable projects and partnerships. One such venture was its partnership with Cerberus in 2021 to establish a special situations platform for India’s residential real estate sector.
The company’s performance hasn’t gone unnoticed either. At the Dun & Bradstreet BFSI Awards 2018, HDFC was recognised as India’s Leading Housing Finance Company – testament to their commitment towards customer-centric approach and excellence.
In terms of growth strategies and expansion plans, HDFC announced a transformational merger with HDFC Bank in 2022 – adding another feather to their cap while simultaneously strengthening their financial portfolio.
In addition to housing finance, sectors like consumer durables and textile are integral to India’s economic fabric, reflecting the country’s diverse industrial capabilities.
2. LIC Housing Finance
You might’ve heard about LIC Housing Finance, a subsidiary of Life Insurance Corporation of India. Let’s delve into some key aspects you should know about this top-tier finance company.
In the fiscal year 2022, the company reported an impressive net profit of ₹1,180.28 crores in Q4 FY23. That’s a 5.51% increase from the previous year! Not only that, but their total income for Q4 FY23 also skyrocketed to ₹6,415.17 crores – a whopping 20.85% year-on-year growth.
Here’s a quick glance at their financial performance:
| Metric | Value in Q4 FY23 | % Increase YoY |
|---|---|---|
| Net Profit | ₹1,180 crores | 5.51% |
| Total Income | ₹6,415 crores | 20.85% |
Now let’s talk about their workforce; they’re backed by around 2,197 dedicated employees as of 2022.
Their services include:
- Home loans
- Plot loans
- Home improvement and construction loans
- Home extension and top-up loans
- Refinance options
- Construction finance and term loans for builders and developers …and much more!
Their client base is vast too; from individuals to builders and corporate clients – they serve them all!
LIC Housing Finance isn’t just any other company though; it’s been recognised as ‘Brand of the Decade’ by BARC Asia in 2019! It has even crossed ₹2,50,000 crores in assets – quite an achievement indeed!
They’re headquartered in Mumbai but have left footprints across India with their impressive portfolio since inception back in 1989.
Although we don’t have exact numbers on market share available right now: it doesn’t take away from the fact that LIC Housing Finance stands tall as one of India’s largest housing finance mortgage loan companies.
The Economic Times named them “Best Organisation for Women” (2022), BFSI Awards crowned them “Best Housing Finance Co.”, CIBIL acknowledged them for “Best data quality in HFC” among many more recognitions over the years.
They’re open to partnering with small finance banks (SFBs) to tap into home and affordable housing segments further!
3. Indiabulls Housing Finance
Established as India’s third-largest housing finance company, Indiabulls Housing Finance Ltd. (IBHFL) is regulated by the Reserve Bank of India (RBI). They’ve gained a reputation for their attractive home loan offerings, servicing more than 1.4 million customers.
In the financial year 2022, they reported impressive figures with revenue reaching ₹8,983.31 crores and an astounding profit of ₹8719.00 crores. Their team consists of around 4,603 dedicated employees working meticulously to uphold the company’s standards.
The registered headquarters are situated at 5th Floor, Building No. 27, K G Marg, Connaught Place, New Delhi.
They’ve made some significant strides over time. Notably disbursing loans of over ₹3.08 trillion with a balance sheet size of ₹0.70 trillion as of March 2023 is one such achievement.
Major Milestones
| Year | Achievement |
|---|---|
| 2023 | Disbursed loans exceeding ₹3.08 trillion |
Indiabulls has also engaged in notable partnerships and acquisitions to expand its business horizons further – like the acquisition of its mutual fund business by Groww in 2023 for INR 175.6 crores.
Despite stiff competition in this sector, it still holds its ground as the third-largest private housing finance company in India – a testament to its consistent performance and customer trustworthiness.
The brand has been recognised on multiple occasions for their commitment towards providing an excellent working environment:
- Ranked amongst India’s Best Companies to Work For in 2019
- Acknowledged as part of India’s Best Workplaces in BFSI-2019
- Bagged a spot within India’s Best Workplaces in NBFC-2019
In addition to all these accomplishments and recognitions, G Square Housing inked a deal with MS Dhoni as their brand ambassador back in 2022; further bolstering Indiabull Housing Finance’s image across markets.
4. PNB Housing Finance
Let’s delve into the details of one of India’s top housing finance companies – PNB Housing Finance. Specialising in providing housing loans for various needs, this company has made a significant mark on the industry.
In terms of financial performance, PNB Housing Finance recently reported a net profit of ₹347 crore in the June quarter of 2022, marking a substantial 48% increase from the previous year. Their total income rose to ₹1,708 crore from ₹1,412 crore during the same period last year.
| Year | Net Profit (in Crore) | Total Income (in Crore) |
|---|---|---|
| 2022 | ₹347 | ₹1,708 |
| 2021 | ~₹234 | ₹1,412 |
Operating with an impressive team strength of 1,425 employees as of March end 2022, their services are primarily targeted towards individuals and corporate bodies for varying housing loan requirements such as purchase and construction. They also cater to repair and upgradation needs.
Based out of New Delhi at Antriksh Bhawan near Connaught Place, they serve a diverse client base including families and businesses seeking housing loans. Over time they have disbursed around ₹14,448 crore to over 67k loan accounts under the Government’s PMAY-CLSS scheme supporting affordable housing until March end 2022.
In 2019 PNB Housing Finance raised $100 million (~₹690 crore) from International Finance Corporation (IFC), aimed at financing affordable housing projects purchase.
Founded under Companies Act 1956 registration & being listed as a registered NHB (National Housing Bank) house finance company; PNB continues its journey towards growth and service excellence. They’ve been recognised multiple times for their efforts bagging awards like “Best Housing Finance Company” at BFSI Technology Excellence Awards by Quantic Business Media Pvt Ltd in recent times (year: 2022).
They source their business through their distribution subsidiary – PHFL which further cements their position within the lending landscape.
5. AAVAS Financiers
Delving into the top housing finance companies in India, you can’t overlook AAVAS Financiers. With a workforce of over 5,222 employees as of 2022, they’ve made a significant impact on the industry.
For context, their net profit for the quarter ending June 2023 was ₹109.82 crores – that’s a robust growth of 23.40% compared to the same period in the previous fiscal year! Their consolidated net sales also tell an impressive story; December 2022 saw them soaring at ₹411.37 crores, marking a YoY increase of 20.08%.
In essence, AAVAS Financiers is geared towards providing housing loans in un-served and under-served markets across various states in India. They offer diverse loan products like Home Loans, Loan Against Property, MSME Business Loans etc., tailored to meet your wide-ranging needs.
| Product | Description |
|---|---|
| Home Loans | For purchasing or constructing residential property |
| Loan Against Property | Loan given against the mortgage of property |
| MSME Business Loans | To support micro, small and medium enterprises |
Their headquarters are nestled in Jaipur, Rajasthan – but their influence spreads far beyond this region thanks to their commitment to reaching out to un-served and under-served communities.
The company began its journey as a private limited company back in February 2011 before kicking off operations in March 2012. Since then it has experienced transformative changes like being converted into a public limited company (2013) and getting listed on BSE and NSE (2018).
They were hailed as Best BFSI Brand at The Economic Times Best Brands Conclave – ET Edge for two consecutive years (2023 & prior year). Plus let’s not forget FE India’s Best Banks Awards crowning them as BEST NBFC for the year 2020-21!
AAVAS Financiers have expressed their dedication towards growth and employee development in their Annual Report for FY22-23.
Even with all these achievements under its belt, AAVAS hasn’t rested on its laurels; It had wholly-owned subsidiary named Aavas Finserv Limited (AFL), which was voluntarily liquidated by August 2023 reflecting prudent strategic decisions reflective of changing business landscape.
6. L&T Housing Finance
When you’re searching for a top housing finance company in India, L&T Housing Finance is definitely one to consider. It’s part of the larger umbrella, L&T Financial Services which boasts an impressive workforce of 24,643 employees.
In Q1 FY23, they reported a revenue of ₹2,988.4 crore. However, their performance didn’t stop there as by the June quarter of FY24 it had risen by 7.86% to ₹3,223.3 crore! Their consolidated net profit also saw a significant leap – increasing by 102.6% to ₹530.93 crore during the first quarter of FY24 from ₹262 crore the previous year.
Well, L&T Finance provides a range of housing loan products including home loans, loans against property, top-up loans and even non-residential property loans.
Headquartered in Mumbai at Brindavan Plot No177 C.S.T Road Kalina Santacruz East Mumbai Maharashtra 400098 this financial powerhouse has made quite an impact in its industry.
Back in 2018 they really shook things up when they acquired Indo Pacific Housing Finance Ltd (IPHF) – allowing them to enter into home finance business.
They’ve been around for a while now and have established themselves as one of India’s leading non-banking financial companies (NBFC). Offering more than just housing loans – they provide two-wheeler loans micro-loans SME loans farm loans and consumer loans too!
With an impressive market capitalisation of ₹30,840 crore it’s clear to see why so many trust them with their financing needs.
Over the years L&T Finance has received numerous accolades for women empowerment excellence in corporate governance and CSR initiatives.
7. Motilal Oswal Home Finance
Let’s delve into the world of Motilal Oswal Home Finance Limited (MOHFL), a prominent player in the Indian housing finance sector. Based out of Mumbai, this company is a subsidiary of Motilal Oswal Financial Services Ltd (MOFSL), which originated as a broking house back in 1987 and later branched out into asset management and home financing.
Being one of India’s top housing finance companies, MOHFL focuses primarily on delivering affordable home finance solutions. Their key clients are primarily individuals seeking home loans, particularly those targeting the affordable housing segment.
Throughout the financial year 2022-23, MOHFL displayed an impressive performance with its revenue growth rate soaring by 18.5%, elevating from ₹592 crores to ₹707 crores. In parallel to their revenue growth, they also observed their net profit rise from ₹95 crores to ₹135 crores; marking an increase by 43.15%.
| Financial Year | Revenue | Profit |
|---|---|---|
| 2022-23 | ₹707 Cr | ₹135 Cr |
As for their workforce strength as of May 2022, MOHFL boasts between 1,001 and 5,000 dedicated employees working towards achieving the company’s mission.
The parent company of MOHFL – Motilal Oswal Financial Services – has been recognised through numerous awards over the years. One notable accolade was bagging three awards for their “DIY Disaster of Investing” campaign at the Masters of Modern Marketing Awards held in 2022.
It wouldn’t be fair not to mention some remarkable personalities associated with this renowned finance firm:
- Mr Motilal Oswal: The managing director & CEO of MOFSL.
- Mr Raamdeo Agrawal: The chairman of MOFSL.
- Sukesh Bhowel: Appointed as Chief Executive Officer (CEO) in June 2023.
8. Tata Capital Housing Finance
Let’s delve into one of the leading providers in the housing finance sector – Tata Capital Housing Finance. With a robust growth trajectory, it’s been making significant strides in India’s financial landscape.
In the fiscal year 2022-23, Tata Capital Housing Finance saw an impressive revenue surge. The company reported a gross income of ₹7,939 crores, marking a 25% increase from the previous year’s ₹6,340 crores. Similarly, their profit after tax catapulted by a noteworthy 44.68%, going from ₹1,24,464 lakhs in FY 2021 to ₹1,80,081 lakhs in FY 2022.
| Fiscal Year | Gross Income (in crores) | Profit after Tax (in lakhs) |
|---|---|---|
| FY 2021 | ₹6,340 | ₹1,24,464 |
| FY 2022 | ₹7,939 | ₹1,80,,081 |
With a dedicated workforce of 4,314 employees, they’ve been able to deliver top-notch services across various fronts. Their portfolio features diverse financial products like home loans and home extension loans. They also offer affordable housing loans under the Pradhan Mantri Awas Yojana Scheme and project finance loans to developers.
Strategically located at Ganpatrao Kadam Marg in Lower Parel Mumbai – you’ll find their registered office buzzing with energy and innovation.
Tata Capital Housing Finance Limited (TCHFL) was established back on October 15th in 2008. Since then they’ve grown exponentially and achieved several milestones along their journey.
For instance, in FY 2022-23 itself they reported their highest-ever disbursals along with record-breaking profit after tax figures.
Over time they’ve built strategic alliances too; notable collaborations include partnerships with Ninja Loans as well as Project & Infrastructure Finance ventures. This has further boosted their standing within the industry.
Their commitment towards best practices hasn’t gone unnoticed either! Recently becoming only the third company within the revered Tata Group to conform generally to International Professional Practices Framework (IPPF), TCHFL was even certified through an External Quality Review Process!
9. Home First Finance Company India
Stepping into the spotlight as one of India’s top housing finance companies, Home First Finance Company India (HFFC) has carved out a significant niche for itself within the affordable housing market. Let’s delve into what makes this company a strong contender in this competitive industry.
With an impressive total income of ₹795.60 crores and net profit of ₹228 crores in 2022, HFFC’s financial performance is commendable. With 673 dedicated employees on board, they’re geared to offer excellent service to their clients.
The company thrives on offering products tailored specifically for low and middle-income individuals. They primarily provide home loans, loan against property, and home construction loans – catering particularly to first-time homebuyers who often find larger financial institutions overwhelming.
Having its headquarters in Mumbai, Maharashtra certainly positions HFFC well within one of the country’s main economic hubs. Yet their reach extends far beyond just Mumbai – with a presence across 13 states and one union territory via 111 branches.
HFFC holds some noteworthy feathers in its cap too! For instance, it crossed an impressive milestone of ₹35 billion assets under management (AUM) back in 2020. More recently, by March 2023 their AUM had soared to ₹7,198 crores – that’s a steady compound annual growth rate (CAGR) of roughly 30%.
Their sound financial practices haven’t gone unnoticed either – Morningstar’s Sustainalytics bestowed them with a “Low Risk” ESG Rating. And if you’re checking out their score – it sits at an encouraging 16.2!
In terms of influential partnerships and investments, names like Warburg Pincus and TrueNorth emerge as key players associated with HFFC since its inception back in 2010.
10. Can Fin Homes Limited
Stepping into the world of housing finance in India, let’s explore Can Fin Homes Limited. With a strong financial backbone, it’s no wonder they’re a trusted name in the industry.
For the fiscal year 2022, you’ll find that Can Fin Homes reported operating revenues of an impressive INR 2,742 crores. The company boasts a solid workforce of 598 employees as of 2022.
Here are some quick facts about their business:
| Year | Revenue (INR Crore) | Employees |
|---|---|---|
| 2022 | 2742 | 598 |
The main products and services offered by Can Fin Homes include individual and commercial housing loans along with other financial solutions like loan against property and personal loans. They even offer specific plans for children’s education and pensioners.
Their client base is diverse; catering to low and middle-income groups, first-time homebuyers as well as salaried professionals and self-employed individuals.
Established under the sponsorship of Canara Bank in 1987, Can Fin Homes was actually the very first housing company in India to be promoted by a nationalized bank. It’s based out of Bengaluru at No.29/1, Sir M N Krishna Rao Road , Lalbagh West, Basavanagudi, Bengaluru – 560 004, India.
A notable moment for them was when Caladium Investment Pte Ltd purchased a considerable stake (13.45%) from Canara Bank for INR 7.5 billion back in 2017.
As far as market presence goes, their market cap stood at INR 96.457 billion as of June 2023 – showing it’s not just about history but also current standing.
All these points highlight why they deserve to be among your top choices for housing finance companies in India.
Conclusion on housing finance companies in India
As India’s housing finance sector thrives, so do other industries. From retail to education, the interconnected growth of various sectors underscores the dynamism of the Indian economy.
It’s clear that housing finance companies are shaping the future of real estate in India. With their varied loan offerings, they’re making home ownership accessible to millions across the country. What makes these top 10 companies stand out is their commitment to customer satisfaction and financial transparency.
Remember, choosing a housing finance company isn’t just about comparing interest rates. It’s also essential to consider factors such as processing fees, prepayment charges, loan tenure flexibility, customer service quality and the company’s reputation.
India’s vast industrial landscape doesn’t stop at housing finance. The nation also excels in fields ranging from pharmaceuticals and footwear to innovative sectors like game development and IT. These diverse industries collectively propel India’s global economic standing.
Finally, it’s important for you to read through all the terms of your loan agreement before signing anything. By doing so, you’ll avoid any unpleasant surprises down the line. Always take an informed decision when it comes to your dream home financing!
