Cholamandalam Investment & Finance Co., an Indian financier for vehicles, is persisting with its plan to set up a mortgage-finance unit undeterred by a credit crunch that’s roiling shadow banks in the nation.
A housing finance subsidiary will help the company grow its loan book faster, said Cholamandalam’s Executive Director Arun Alagappan. The company will target buyers of low-cost homes and offer loans of as much as 1.5 million rupees ($21,000), he said.