Motilal Oswal Home Finance Limited – A Brief Overview
Motilal Oswal Home Finance Limited (MOHFL) is a professionally managed housing finance company with robust support from its parent company, Motilal Oswal Financial Services Limited (MOFSL), MOHFL has emerged as a credible player in the affordable housing finance space.
Overall, the company enjoys a special mix of financial strength and technical knowhow that guarantees ethical business conduct, strong governance, and efficient execution capabilities.
Key Highlights of MOHFL:
✅ MOFSL’s Subsidiary, a Leading Financial Services Company in India.
✅ Target LMI customers for Financial inclusion in Indiaमे.
✅ Long affordable housing finance solutions for first-time home buyers and underserved segments.
✅ 110 branches spread across 12 states with a deep penetration in semi-urban and rural markets.
✅ Loan book size of ₹3,435 crores (FY22) — signifying a stable and growing financial health
Business Philosophy — Driving Affordable Housing in India
Working with a mission to drive financial inclusion in India, MOHFL provides affordable housing finance solutions to Lower and Middle-Income (LMI) families. The company aims to help a first-time home buyer, particularly those without the opportunity to access formal banking and credit facilities.
Who Is Eligible for Loans from MOHFL?
Motilal Oswal Home Finance serves a broad spectrum of customers, including:
- Individuals & Households for Purchases & Construction
- Home loans for purchase, construction or extension of house
- Provides tailored loan choices with terms accommodating long-term arsenals.
Loans for Home Repairs & Renovations:
- Provides loans to repair, renovate or improve existing homes.
- Assists families improve their living condition through simple financing.
Offers home loans to people without formal income proof or credit history:
- Analyses cash flows/creates internal scoring models instead of credit scores to assess repayment ability.
- Aids self-employed & informal sector workforces in becoming home owners.
Market Position & Operational Strength of MOHFL
Geographical Coverage & Network of Branches
And as of March 31, 2022, MOHFL has a geographical footprint that spans 12 states, including North, West, South and Central India.
States Where MOHFL Operates:
✔ North India: Haryana, Uttar Pradesh, Delhi, Rajasthan
✔Western India: Maharashtra, Gujrat
✔ Central India : Madhya Pradesh, Chhattisgarh
✔ South India: Karnataka, Tamil Nadu, Telangana, Andhra Pradesh
✔ Total Branches: 110 branches, strong presence in semi-urban and rural areas
This presence makes MOHFL a able to serve less fortunate sections of society and ensure that these suitable housing loans are passed down to the roots.
About SME Finance & Loan Performance
Loan Book Size (FY22)
- As on March 31, 2022, MOHFL had an outstanding loan book of ₹3,435 crores.
- At the time, per reports, the company had sold its NPA as a measure to clean its books and improve both its financial health as well as risk management by reducing its loan book significantly, and selling it over to an Asset Reconstruction Company (ARC).
Key Financial Takeaways:
✔ Good risk management by selling off NPAs, a clean balance sheet.
✔ Ongoing emphasis on affordable housing finance, especially for self-employed individuals and LMI families.
✔ Leverage the financial expertise of Motilal Oswal Group to enhance position in housing finance.
Why consider an investment in Motilal Oswal Home Finance Limited Unlisted Shares?
With a strong parentage of Motilal Oswal Financial Services, MOHFL provides an attractive investment opportunity in the rapidly growing affordable housing segment in India.
✅ Backed By Parent Company: A subsidiary of Motilal Oswal Financial Services Ltd who is a well renowned name in financial services.
✅ Large Affordable Housing Market: The housing for all by 2024 target under PMAY ensures that MOHFL benefits massively from its focus.
✅ Network Across 12 States: Reaching tier 2 & 3 cities, addressing undervalued housing finance segments.
✅ Customer-Centric Approach: Focus on self-employed & informal sector borrowers, making it different from the throng of housing finance companies
✅ Finance & Risk Management: Proactive NPA reduction → bad loans sold → Healthy Loan Book
✅ Massive Growth Potential — Considering India’s budding middle class there is enormous upside potential considering the gap between demand and supply in affordable home loan.
Conclusion – Where will Motilal Oswal Home Finance Limited go from here?
- With a solid business model, healthy liquidity, financial strength and scalability, MOHFL is best poised to tap into the growing housing finance market in India.
- MOHFL is anticipated to be a key player in filling the housing finance gap particularly for first-time homebuyers and self-employed individuals.
- MOHFL is a profitable long-term choice for investors’ eyes over high-growth, non-listed investment opportunity.
Invest in MOHFL’s unlisted shares today and stay ahead!
