7 Best Indian Housing Finance Companies In The Year 2021

 7 Best Indian Housing Finance Companies In The Year 2021

In this article, we will see the top 7 housing finance companies India. The housing industry presently contributes to approximately 8-9% of the GDP of India.

What Do We Mean By A Housing Finance Company?

An HFC (Housing Finance Company) is a form of a non-banking financial company that is primarily occupied in the business of offering finance for housing. With the rise of major HFCs in India offering housing loans to house buyers, this sector has seen unprecedented growth from being a government offering service to private entities entering this housing finance market to offering such services. 

The regulatory provisions of HFCs are offered under National Housing Bank Act 1987 with the National Housing Bank being the authority of regulation for HFCs. In order to ignore dual regulation, there were certain exemptions that were granted to the Housing Finance Companies, RBI Act. So this can be said that the housing finance companies are regulated by the Reserve Bank of India. 

Top Housing Finance Companies

Now that you know the meaning of HFCs, here is a Housing finance companies list that should be considered for 2021 in India. This list will also include a private home loan finance company list. 

1. Housing Development Finance Corporation Ltd.

HDFC is considered as a leading provider of Housing Finance in India. This company pioneered Housing Finance in 1977. It has an extensive network distribution that comprises 546 interconnected offices with outreach programs to various towns and cities all over India.

  • Total Sales: Rs 109,052 Cr
  • Profit: 21,013 Cr
  • Market Cap: 422,652 Cr.
  • ROE: 15.95 %
  • Sales Growth (3Yrs): 21.60 %
  • Promoter holding: 0.00 %
  • Debt to equity: 2.17
  • Price to book value: 3.37

2. LIC Housing Finance Ltd.

LIC Housing Finance Ltd which was incorporated in 1989, is one of the top Housing Finance Companies in India 2021 with the main objective of offering long term finance to people for the construction or purchase of flats/houses for residential purposes in India.

This Company also offers finance on the current property for personal or business needs and also extends loans to professionals for purchasing their office space and equipment. The Company also offers finance to persons occupied in the business of construction and sale of residential equity. LIC is one of the most extensive marketing networks in the industry in India with 273 marketing offices.

  • Revenue: Rs 18,917 Cr
  • Profit: 2,681 Cr
  • Market Cap: 21,919 Cr.
  • ROE: 15.89 %
  • Sales Growth (3Yrs): 11.67 %
  • Promoter holding: 40.31 %
  • Debt to equity: 9.77
  • Price to book value: 1.27

3. Indiabulls Housing Finance Ltd.

Indiabulls Housing Finance Ltd. (IBHFL) which was founded in 2000 is the second-largest private housing finance company in India. The Company has offered its services to over 1 million happy customers all over India and has cumulatively disbursed loans of over Rs 2.47 lakh Crores.

  • Total Sales: Rs 15,997
  • Profit: 3,503 Cr
  • Market Cap: 12,923 Cr.
  • ROE: 26.53 %
  • Sales Growth (3Yrs): 22.67 %
  • Promoter holding: 21.52 %
  • Debt to equity: 5.33
  • Price to book value: 0.76

4. Dewan Housing Finance Corporation Ltd.

The main business of Dewan Housing Finance Corporation is to offer loans to Retail customers for purchase or construction of a residential property, loans against property.

For over the past three decades, DHFL has been offering easy access to affordable Housing Finance to fulfill the home-ownership aspirations of millions of Lower and Middle-income families in semi-urban and rural parts of India. The company stands in the 4th largest in the list of Top housing finance companies in India.

  • Revenue: Rs 12,270 Cr
  • Profit: -1,677 Cr
  • Market Cap: 506.82 Cr.
  • ROE: -11.63 %
  • Sales Growth (3Yrs): 20.88 %
  • Promoter holding: 39.21 %
  • Debt to equity: 11.57
  • Price to book value: 0.06

5. PNB Housing Finance Ltd.

PNB Housing Finance Limited (PNB Housing) is a registered housing finance entity with National Housing Bank (NHB). It was initiated under the Companies Act, 1956, and began its functioning on November 11, 1988. This Housing finance entity is promoted by Punjab National Bank (PNB).

The Company also appeared with a public issue of equity shares in 2016. The Housing finance companies shares of this company are listed on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) as well. 

  • Total Sales: Rs 8,623 Cr
  • Profit: 1,348 Cr
  • Market Cap: 7,298 Cr.
  • ROE: 15.45 %
  • Sales Growth (3Yrs): 40.49 %
  • Promoter holding: 32.66 %
  • Debt to equity: 6.76
  • Price to book value: 0.91

6. Housing & Urban Development Corporation Ltd.

Housing and Urban Development Corporation Ltd (HUDCO), is a premier techno-financing public sector enterprise, in the area of infrastructure and housing development. It is one of the top housing finance companies that is currently operating in India.

The Company is headquartered in New Delhi and functions through a strong and multi-disciplinary workforce that is placed over its nationwide network of regional and development offices.

  • Total Sales: Rs 6,568 Cr
  • Profit: 1,626 Cr
  • Market Cap: 7,227 Cr.
  • ROE: 11.29 %
  • Sales Growth (3Yrs): 19.52 %
  • Promoter holding: 89.81 %
  • Debt to equity: 0.39
  • Price to book value: 0.60

7. GRUH Finance Ltd.

GRUH Finance Started functioning in 1988 as a subsidiary of HDFC. GRUH Finance had 195 Branches over 11 states in India. With an aim in rural India, Gruh finance has attained 1,131 Talukas spread over 125 districts in India.

  • Total Sales: Rs 2,110 Cr
  • Profit: 448 Cr
  • Market Cap: 23,321 Cr.
  • ROE: 25.95 %
  • Sales Growth (3Yrs): 16.69 %
  • Promoter holding: 47.43 %
  • Debt to equity: 8.73
  • Price to book value: 12.33

Conclusion

With housing finances, you can meet your business or personal expenses by taking a loan against your property i.e. by mortgaging your prevailing residential or commercial property. Other than that if you dream of owning a house or an office for yourself you can take a loan and fulfill your dream. And this is done by the Housing finance companies. Being a secured loan, the processing and approval are simple and quick.

Frequently Asked Questions On Housing Finance Companies

Which is India's largest housing finance company?

HDFC is considered as a leading provider of Housing Finance in India. This company pioneered Housing Finance in 1977. It has an extensive network distribution that comprises 546 interconnected offices with outreach programs to various towns and cities all over India.

How does a housing finance company work?

With housing finances, you can meet your business or personal expenses by taking a loan against your property i.e. by mortgaging your prevailing residential or commercial property. Other than that if you dream of owning a house or an office for yourself you can take a loan and fulfill your dream. And this is done by the Housing finance companies.

What are housing finance companies in India?

The Housing finance companies in India include Housing Development Finance Corporation Ltd, LIC Housing Finance Ltd, Indiabulls Housing Finance Ltd, Dewan Housing Finance Corporation Ltd, PNB Housing Finance Ltd, Housing & Urban Development Corporation Ltd, and GRUH Finance Ltd.

Andrey Ivanov

Andrey Ivanov is a business and finance expert. He has analyzed the finance and business market closely and writes all his articles with utmost precision.

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