Building your own house is a huge milestone for everybody. However, certain segments are deprived of achieving this milestone due to lack of income documents needed to avail a bank loan. Our company believes in providing this segment home loans, so they too can build their own dream house.
Beneficiary Led Construction (BLC) at SMHFC refers to the Home construction loans where an individual can avail financial support to renovate or construct a house on his/her land. The cost of construction alone can stall the dream of building one's own home. SMHFC caters to this segment by providing them with a home loan to construct their own house, without them worrying about the monetary woes.
At SMHFC, BLC first set foot in Rajasthan in the year 2015. The company piloted around 225 cases covering 3-4 districts of the state and catered to the customers spread across semi-urban and rural areas. Most of the customers were from the informal segment and the title documents were also a combination of formal and informal titles. The first-hand experience was good as most of the accounts were either current or they had paid off their loans.
Again in 2018, to leverage the customer base of SMHFC and to explore the Open Market, the company decided to formally launch this product covering the states of Maharashtra, Rajasthan, Chhattisgarh and Madhya Pradesh. We began with formalizing the operations with a combination of building in-house teams as well as empanelling external experts related to the Legal and Technical departments. Our strategy was to focus and bank on the in-house teams and build their capabilities. One of the major steps was to hire Verification Officers with a mandatory Civil Engineering background. This majorly helped the company in controlling the quality as well as TAT. Having in-house capabilities supported us in building a team that is better equipped than their counterparts in other companies, both in Sales as well as Operations.
Another important aspect of BLC is that the majority of the customers are end-users, which helps in mitigating risk further. This is significantly comforting to venture in any type of loan. Another big advantage of BLC is that it gives you the freedom of exploring the retail market and the dependency on external factors is less. This provides the firm with a steady flow of business even in tough times. The kind of markets, as well as customers the company caters, is mostly from the in-house sourcing of business. This helps in controlling and keeping away the scrupulous elements of the marketplaces.
Now with a full-fledged team in place and a better understanding of the markets as well as processes, the team hopes that BLC will be able to contribute positively to the profitability of the company along with AHP.