Religare Enterprises is fine tuning its plans to enter the home loan segment. The financial services company is in the process of acquiring a majority stake in Maharishi Housing Development Finance Corporation (MHDFC).
MHDFC has the National Housing Bank (NHB) and the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interests (SARFAESI) licence. The deal will enable Religare to enter into the home loans business, which requires a NHB licence. The latter will also be able to get into asset recovery and reconstruction business.
Religare plans to merge MHDFC with its NBFC arm – Religare Finvest – that presently operates a consumer finance business with a mortgage book size of around Rs 450 crore
MHDFC has a presence in the rural and tier-III markets.