The Indian home loan market is astir with the entry of Wizard Home Loans from Australia. Wizard is a subsidiary of GE Money and has ambitious targets of figuring in the top 5 mortgage companies of India.
With an investment target of USD 200 million by 2011, Wizard plans to
have 250 branches in India. The company is operating through GE Money initially,
but will offer its products independently once it acquires the operating
license.
The Wizard home loan rates are an attractive 9.99%, lower by 50 to 175
basis points and substantially less than other lending institutions
like the SBI, ICICI Bank and HDFC.
India’s mortgage sector has a propensity to multiply, with Rs.2.3 trillion in outstanding with housing finance companies and banks as on May 2007.
The RBI’s home loan rate hike this year has set back the growth rate of this sector, and Wizard is expected to leverage heavily on the higher rates by other lenders.
