Winning Bizness Desk
Mumbai. In a significant move set to impact India's housing finance sector, Mukesh Ambani's Jio Financial Services (JFS) is gearing up to offer home loans to the general public. The company, which was launched last year as a non-banking financial company (NBFC), is in the final stages of rolling out its home loan services. This move marks a strategic expansion of JFS's offerings, as it aims to cater to the financial needs of millions of Indians aspiring to own a home. JFS's CEO, Hitesh Sethia, announced the plan during the company's first annual meeting held on Friday. He emphasized that the company has already begun beta testing some of its financial products, including home loans, loans against assets, and loans against securities. Sethia stated, "We are in the final stages of launching home loan services. We have launched some things as a test," indicating that the company is refining its offerings before a full-scale launch.
The entry of JFS into the home loan market is expected to create significant competition, especially as the company leverages its robust digital infrastructure and extensive customer base from its sister company, Reliance Jio. With the backing of Asia's richest businessman, Mukesh Ambani, JFS is well-positioned to disrupt the traditional home loan market by potentially offering competitive interest rates and a streamlined loan approval process.
However, the company's recent performance in the stock market has seen a slight dip. On Friday, shares of Jio Financial Services closed 1.21% lower at Rs 321.75, as per data from the Bombay Stock Exchange (BSE). During the trading day, the share price touched a low of Rs 320.50. The company's stock has a 52-week high of Rs 394.70 and currently boasts a market capitalization exceeding Rs 2 lakh crore.
The anticipated launch of home loan services by JFS is part of a broader strategy to expand its financial offerings, which also include loans against property and securities. This move aligns with Mukesh Ambani's vision of creating a comprehensive financial services ecosystem under the Reliance umbrella, catering to a wide range of customer needs. As JFS prepares to enter the home loan market, industry experts are watching closely to see how the company will differentiate itself in an already crowded sector. The introduction of innovative financial products by JFS could potentially reshape the housing finance landscape in India
