Tata Capital Housing Finance Limited, a wholly-owned subsidiary of Tata Capital Limited has finally received certificate of registration from the National Housing Bank, to start business as a housing finance company.

The company believes that floating a home finance company will give it opportunity to participate in the growing housing sector. Further, the firm said, that creation of a separate subsidiary will help it consolidate and focus on its housing finance business.

The new company plans to offer both fixed and floating interest rates.

According to a company official, the company's focus will be primarily on Tier-II and Tier III cities, which are largely not covered by affordable housing finance options. The company would provide loan of Rs 2-lakh to Rs 2-crore with a tenor ranging from 12 months to 20 years.

The firm intends to open 30 branches for Housing finance business, by the end of FY2010.

Tata Capital already has a presence in retail finance with auto loans, personal loans and loan against property among its products.