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Banks and HFCs in the midst of hiring amid growing demand for home loans

Banks, housing finance companies and NBFCs are in full employment in the face of growing demand for home loans.

Industry experts and players say hiring for home loan services has increased by at least 20-25% in recent months as players seek to expand their small town home loan portfolios and attract more customers thanks to lower mortgage rates.

“Hiring increased by 22% to 25% by banks, NBFCs and HFCs. This is especially the case over the last three to four months, especially after the second wave of the pandemic. A small portion seasonal in nature, but we expect it to be broadly supported over the next few years. The need for additional staff is also present in both urban and rural markets,” said Amit Vadera, Vice President – ​​Staffing, TeamLease Services.

Around 90% of the requirements are in the sales function with starting salaries between ₹15,000 and ₹20,000 along with attractive variable incentives.

Amid the pandemic and working from home, many people are now considering their own home as well as larger homes, driving demand for home loans. Banks, HFCs and NBFCs view the mortgage portfolio as performing better, as borrowers generally do their best not to default on mortgages. They offer interest rates as low as 6.4% (like Union Bank) and also have aggressive expansion plans.

“There has been an increase in hiring as most of the small finance banks, HFCs and NBFCs in different segments are expanding their reach to new locations and need staff,” said the head of a finance company housing.

However, he noted that many employees leave the same company, which leads to increased labor costs.

“Every business is booming. Everyone thinks there will be a huge increase in demand for housing and other credit,” he noted, however.

Shriram Housing Finance had announced plans in September to hire 350 staff in Andhra Pradesh and Telangana as part of its expansion plans in the region. ICICI Home Finance had also announced in September that it would hire more than 600 people by the end of this calendar year to meet the demand for home loans.

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