GE Consumer Finance, the global consumer lending arm of General Electric Company, on Wednesday expanded its retail finance presence in India by entering the housing and personal finance segments.
GE is already present in the consumer durables and automobile loans space through GE Countrywide but it will undertake a rebranding exercise over the next year to bring all retail finance businesses under an umbrella brand called GE Money. The new home loans company GE Money Housing Finance Company has been registered with the National Housing bank.
"GE Money's loan products will cater to medium and high net worth individuals. The self-employed category still remains unserviced and GE Money will reach out to them," said Vishal Pandit, president and CEO, GE Money.
The company will offer home loans on floating interest rates in the region of 7.5-8.5 per cent, depending on the tenure of the loan.
Since GE Money is targetting high net worth individuals, it expects the average loan size to be in excess of Rs 1,500,000.
Home loans stand at close to two per cent of India's GDP and comprise 55 per cent of all retail lending. "It is a very significant market where we were not present. Now with personal and housing loans, our lending portfolio will be complete," Pandit said.
GE Money housing loans will be offered for purchase of ready-to-move-in houses and apartments and consumers can also avail top-up loan offers on balance transfers. Loans up to 10 times the annual income for self-employed professionals will be offered for a time period up to 20 years.
GE Money operates in 41 countries and in eight of them it also runs banking operations. According to Scott Bayman, president and CEO, GE India, the company over the next three years would closely look at opportunities in the banking sector as well.
"We have identified India along with Brazil, Russia and Mexico as our most significant markets, and there will be total commitment from the parent towards the Indian operations," said Ridha Wirakusuma.
GE Money is GE's third largest division with assets of $117 billion. In India, GE Countrywide disbursed loans worth Rs 700 crore (Rs 7 billion) last year and claimed to have a 40 per cent marketshare of consumer durables lending.
According to GE, its JV with SBI and Maruti Udyog in automobile financing would continue even after the rebranding.
