Seeing a huge potential in home loan business, Bajaj FinServ, Bajaj group's financial services arm, is planning to foray into home loan business.

"We already offer secured loans against property and we are the fourth-largest in that segment. We are now evaluating getting into the home loan business, though we have not taken a final decision yet," said FinServ managing director Sanjiv Bajaj.

He further revealed that the company would start offering retail loans against shares next year and would also enter the construction and equipment financing business.

Bajaj FinServ has already expanded into two new businesses this year. Thecomany signed an agreement with insurance firm Allianz in April 2009 for an asset management company (AMC). "We want to tap into a new set of customers with these businesses," added Mr Bajaj.

He pointed out that 90 percent of the AMC business was in the top six cities, but they wanted a low cost delivery system to access the next level of customers outside those six cities. "Today, that business too is very high-end, but we want to look at the middle class and build some simple products for that segment," said Mr Bajaj.

The advisory business plan which is in process would be finalized in3-4 months and may include brokerage. It could cover both equity and non-equity and would be ready for launch by next year.

Presently, many companies are lowering home loan rates to lure borrowers. Recently DHFL has announced low interest rate home loans.