Home First Finance Company India (Home First Finance), incorporated in February 2010, is an affordable housing finance company targeting first time home buyers in low and middle-income groups. As on 30th September, 2020, Home First Finance had a network of 70 branches covering 60 districts in 11 states and 1 union territory in India.
Home First has leveraged digital technology extensively across all processes of customer acquisition, loan applications, managing customer experience and risk management. During FY18-20, Home First Finance’s advances grew at a scorching pace of 51.8% CAGR to Rs. 3,014 crores at the end of FY20. Over the same period, its income grew at a CAGR of 65.2% to Rs.354.7 cr while the net profit grew at a CAGR of 122.6% to Rs.79.2 crore
Affordable housing is a gargantuan growth opportunity for incumbents like Home First. At the end of FY20 the affordable housing finance industry was a mammoth Rs. 9.1 lakh crores in size (CAGR of 53% during the period of FY15-19). The demand for affordable housing has been strong and is expected to grow owing to factors like
* Rising Urbanisation
* Favourable demographic trends
* Rising nuclearization
* Rising demand for independent housing
* Declining age of home buyers
* Government initiatives to provide housing for all by FY22 under PMAY and the CLSS subsidy under the ambit of this scheme. Convergence of PSL guidelines with PMAY guidelines has improved the eligibility criteria from INR 28 lacs to 35 lacs (cap of INR 45 lacs).
* Increased NHB refinance limits for affordable housing loans to aid borrowing costs
* Lowered risk weight rationalisation on Housing Loans
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