Reliance Capital has entered the consumer finance business in a big way. They have set up a company called Reliance Consumer Finance and you can acess the website here.
I came to know about the new venture of Reliance Capital through FM Radio advertisements. They are making high decibel advertisements in FM Radio in Chennai. They offer all kinds of loans from personal loans, car loans, home finance, loan against property and commerical property loans. One thing which immediately caught my attention when I visited their website is that they have clearly mentioned about the eligibility criteria, fees and charges in a very user friendly manner. Ofcourse, the charges mentioned are on the higher side compared to other players like PSU Banks and private banks, I guess the charges would be negotiable.
I personally believe there is lot scope for building the consumer finance business in India. Just like Reliance Money which expanded in a frentic pace in non-urban and non-metro cities, I guess Reliance Consumer finance would also concentrate outside metros to build business in the first place. Considering the pace at which Reliance grows its business, I think it would be a big name in this business in a couple of year's time.
Watch out Reliance Capital stock!