L&T Finance (LTF) launched ‘The Complete Home Loan’ in Bengaluru on Wednesday, which can be availed of by their customers through a completely digital process with the help of a dedicated relationship manager.
The launch of a complete home loan package comes at a time when the retail financing arm of L&T Group has seen a significant reduction in inventory overhang with a superior demand for homes over the construction of new projects.
The company’s retail business has been growing at a rate of a rate of north of 30 per cent CAGR currently, said Sudipta Roy, Managing Director and CEO, LTF.
The home loan product also comes with an option to allow customers to seek a home décor loan if they meet certain requirements, such as a construction-complete property. Using this option, customers will be able to avail a separate consumer loan for home décor of up to 15% of the total home loan amount approved, capped at a maximum of Rs 75 lakh.
As part of the home loan product, the disbursement ranges from a minimum of Rs 30 lakh to a maximum of Rs 7 crore.
Different forms of marketing
To push their new product adoption among first-time buyers, the company is also looking at different forms of marketing.
“We are working very closely with at least seven to eight large developers in Bengaluru, where we will have an integration such that the moment the consumer comes physically to their project site, the consumer will be taken to the application process (for a home loan) without the intervention of the LTF representative,” said Sanjay Garyali, Chief Executive of Urban Finance at LTF.
Betting on Home Décor
Through their optional add-on home décor finance, the company is betting big on the peaking demand in the sector.
India's home décor market is expected to be worth $41 billion by 2028, growing at a compound annual growth rate (CAGR) of 4.14 per cent from 2023, as per research and consulting firm Infogence Global Research.
Besides partnerships with top builders in the Silicon Valley of India, LTF is also looking to partner with and integrate with interior and décor platforms to amplify its reach in the segment.
“The vehicles we are taking are very aggressive, and we want to reach out to consumers across segments such as millennials, or people who are buying houses for the first time, and salaried customers who’ve been working for three to four years,” Garyali told Outlook Business.
Without giving specific names of the partners, he said, “By the end of FY25, we should have at least two or three large partners” who provide turnkey projects in the home décor space.
The company is likely to explore interior design platforms such as Livspace and Urban Ladder to maximize the LTF’s reach among millennials and home buyers who prefer to shop décor using the new-age app-based platforms.
