Godrej Properties have recently signed an agreement with the Central Bank of India, in order to access the bank’s retail client base for selling homes within the mid to affordable range.
According to the terms and conditions of this agreement, the clientele of the Central Bank, which has 4,400 branches all over India, will be given loans at 20 to 50 basis points cheaper than the usual market rate, if they buy their homes from Godrej Properties. Other than the Central Bank, Godrej has similar tie-ups with other banks such as Axis Bank and State Bank. Such alliances would pave the way for the Godrej team to get hold of the banks’ huge customer base across its projects mostly in the western part of India, Kolkata and also in Delhi and the neighboring places like Gurgaon, Noida, etc.
Moreover, this alliance will benefit not only new ventures but also the existing housing projects of Godrej Properties within the Rs.40 lakh range, in diverse markets of the country.
Godrej already has a bond with SBI, so this is a predictable expansion. With the announcement of a high concession rate for housing loans in the latest budget, Godrej would be even more focused on increasing tie-ups with other banks. They have already worked out an approximate plan for that. They have recognized that among customers buying their housing properties, at least 35 to 40 per cent are those who opt for the housing loans. At present, Godrej has ongoing housing developments in Mumbai, Ahmedabad, NCR, Kolkata, Nagpur, Chennai and Bangalore.It is highly possible that by merging with different bank for loan options, Godrej Properties can easily expect a hike of about 15% in their customer base.