The Godrej group has forayed into financial services by launching its housing finance arm.

Godrej Housing Finance (GHF) will start by extending loans at 6.69 per cent interest, which is the lowest in the industry at present.

This venture comes at a time both banks and housing finance companies are witnessing good interest as individuals take advantage of the low interest rates, attractive property prices coupled with discounts offered by developers to purchase new homes.

The Godrej group said it will infuse up to Rs 1,500 crore as capital in the mortgage finance firm which will initially target customers buying apartments from the group’s realty arm Godrej Properties.

“We believe we have gained good understanding about the real estate business and its connection with finance and are entering the new business after a carefully thought strategy,’’ chairman Pirojsha Godrej said.

Managing director and chief executive Manish Shah, who joins the group from Bank of Baroda’s non-bank lending arm, said GHF will try to make lending affordable, flexible, and fair to customers.

Shah added it is targeting a portfolio of Rs 1,000 crore by March 2021, and will touch Rs 10,000 crore in assets under management within three years of the launch with 40,000 loan accounts.

Godrej said the group is committed to investing Rs 1,000-1,500 crore, which the business will need in the first three years.

It may look to get an external investor on board after three years and an initial public offering in 6-7 years.