Advertisement
When should a housing society in Mumbai start considering re...
From GST on JDAs to SEBI’s REIT reclassification and the S...
Stay ahead in the world of real estate with our daily podcas...
Stay ahead in the world of real estate with our daily podcas...
Piramal Capital & Housing Finance has marked a milestone with its first-ever USD 100 million social loan, aimed at bolstering initiatives in affordable housing, microfinance for MSMEs, and support for women entrepreneurs. This innovative financing approach not only expands Piramal's funding base but also underscores its commitment to social impact across India. With over 4.1 million customers and a growing retail business focused on mortgages, Piramal plans to further leverage social loans to drive inclusive growth and address key societal challenges, setting a precedent for future investments in impactful financial solutions.
Piramal Capital & Housing Finance has secured its first-ever social loan of USD 100 million (INR 835 crore) from overseas investors. This loan represents a new approach for Piramal to raise funds and support positive social change in India. Advertisement
Social loans are a type of financing specifically designated for projects with a social benefit. The USD 100 million raised by Piramal will be used for lending in critical areas like affordable housing, microfinance loans for small businesses (MSMEs), and loans specifically for women entrepreneurs. This aligns perfectly with Piramal's existing focus on providing financial services to underserved communities across India.
Social loans offer several advantages. For Piramal, they unlock access to new sources of funding from international investors interested in supporting social causes. Additionally, these loans can raise awareness about social issues in India and encourage other institutions to explore similar financing options.
Piramal Capital & Housing Finance currently serves over 4.1 million customers in India. The company has experienced significant growth in its retail business, with assets under management (AUM) exceeding INR 50,000 crore. Mortgages, which include home loans and small business loans, make up the majority (68%) of Piramal's retail business and are expected to continue growing at a robust pace of 38%. The company plans to further expand its retail business to reach 75% of its total loan portfolio, with wholesale lending forming the remaining 25%. As of March 2024, the retail book stood at around INR 48,000 crore, representing 70% of the total AUM, with the wholesale book at INR 12,000 crore.
This social loan is a significant development for Piramal Capital. It demonstrates the company's commitment to social responsibility while providing a new avenue for raising capital. Social loans are likely to become a more common financing tool in India, offering benefits for both lenders and borrowers who share a focus on social impact. This trend is further supported by the recent success of Shriram Finance, which raised over USD 450 million through a social loan to empower small businesses and vulnerable groups across India.
5th Jun, 2025
25th May, 2023
11th May, 2023
27th Apr, 2023
Advertisement
Facebook
Whatsapp
