The Muthoot group, known for its presence in the gold loan segment is also making an entry into the housing finance segment. The company would render focus on the low income customer segment.

A new company, Muthoot Housing Finance would be set up which would be a complete subsidiary of Muthoot FinCorp.

"We aim to disburse around 125-150 crore in 18 months time through this HFC," Maneesh Srivastava, CEO, Muthoot Housing Finance said.

The loans given out would be in the range of Rs 3 to 10 lakh having repayment tenor of 15 years. Customers having monthly income in the range of Rs 10,000 to Rs 30,000 would be primarily targetted.

"Initially, promoters will invest Rs 100 crore. Later we will keep raising funds from banks and multilateral financial organisations," Srivastava said.

According to Thomas Muthoot, ED of Muthoot Pappachan Group, the company aims to achieve a net interest margin (NIM) of 3% today.