In a candid episode of the “Simple Hai!” podcast, hosted by veteran finance journalist Vivek Law, Rishi Anand, Managing Director and CEO of Aadhar Housing Finance, shared the story of his life, career, and deep expertise in housing finance. The episode traced Rishi’s remarkable journey from humble beginnings to leading one of India’s foremost affordable housing finance companies, focusing on serving the low-income segment. The conversation provided rare insights into his personal struggles, entrepreneurial failures, and his enduring commitment to providing homes to India’s underserved communities.
Early Life and Financial Struggles in Ranchi and Delhi
Rishi Anand grew up in Ranchi, then a quiet hill station in Bihar, now the capital of Jharkhand. His childhood was marked by simplicity—no television or telephone and days spent playing cricket and flying kites. Reflecting on those times, Rishi said his generation related more to struggle than today’s youth.
For higher education, he moved to Delhi, living in a modest ‘barsati’—a small rented room with a rooftop bathroom. With just ₹1000 a month from home, Rishi managed rent, food, conveyance, and studies. Often, money ran out by the 24th of the month, forcing him to rely on the kindness of a local grocer who gave him bread free of cost.
His father, a former Indian Airforce pilot turned electrical contractor, instilled in him the crucial values of time and money, teaching him to “save for bad times.” Watching his father’s struggles, including an inability to finance Rishi’s MBA, deeply influenced his outlook on financial discipline.
Early Entrepreneurship and Hard Lessons
Rishi’s first entrepreneurial venture was a small garment stitching business for exporters. Starting with 10 machines, it grew to 40 within a year, earning enough for his first scooter. However, this success was short-lived. While bedridden with malaria, a business partner sold the factory and machines without his consent, leaving Rishi with a ₹3.5 lakh debt.
This betrayal forced Rishi into a difficult but formative learning phase. Over 10 years, he repaid the entire debt to a friend who kindly waived the interest. He eventually found a job with a housing finance agent earning a modest salary but used all extra incentives to clear his debt.
Three Decades in Housing Finance: A Focus on the Low-Income Segment
Rishi Anand has spent 30 years in the housing loan industry, starting with ICICI and later working at AIG, Reliance, and finally leading Aadhar Housing. Despite his corporate success, he credited his grassroots start as key to understanding the financial realities of low-income customers.
Aadhar Housing is uniquely focused on providing affordable home loans to India’s low-income groups. Rishi emphasized the timeless importance of “Roti, Kapda, aur Makaan” (food, clothing, and shelter), with his company dedicated to the last—helping people build their only homes.
His typical customer builds small homes, often one or two rooms, with loans averaging ₹9-10 lakh. For these families, homeownership is deeply emotional and a once-in-a-lifetime achievement, which makes them highly committed to repaying their loans. This contrasts starkly with higher-income borrowers or investors who view property as an asset, often showing less concern if repossessed.
Affordable Housing Growth and Government Schemes
The real boom in affordable housing, Rishi noted, is in Tier 2, 3, and 4 cities. Government initiatives like the Pradhan Mantri Awas Yojana (PMAY) have been pivotal, offering interest subsidies to millions. Aadhar Housing has benefited over 1 lakh customers through PMAY’s subsidy schemes, and with the recent relaunch (PMAY 2.0), a similar scale of assistance is expected.
Rishi recalled attending conferences a decade ago where experts predicted growth in smaller cities, a vision now coming true as affordable housing becomes a national priority.
Embracing Technology While Serving a Low-Tech Customer Base
Serving low-income customers posed unique challenges—40% of Aadhar Housing’s 3 lakh customers do not own smartphones. Recognizing this, the company balanced digital transformation with on-ground outreach.
Since 2021, Aadhar Housing digitized its entire loan processing, cutting paperwork, reducing turnaround times by half, and enabling faster loan approvals. They also launched a customer app and conducted extensive educational campaigns to help customers understand subsidies and loan processes.
Yet, Rishi stressed the continued need for physical branches and face-to-face interactions, given the customers’ limited tech literacy. Aadhar’s 600 branches help build trust and explain complex loan details directly.
Practical Home Loan Advice from Rishi Anand
Rishi offered key guidance to prospective homebuyers:
- Check Property Legality and Technical Aspects: Ensure clear ownership documents and that the property is not on land reserved for public use, which can cause legal trouble.
- Avoid Overborrowing: Take only the loan amount necessary; avoid becoming overleveraged.
- Prepay Loans Early: Aim to repay within 7-8 years instead of 15-20, saving on heavy interest costs.
- Understand EMIs: Early loan payments mostly cover interest, so prepayments reduce principal, lowering future interest.
- Prefer Floating Rate Loans: They adjust with market rates and typically allow penalty-free prepayments.
He also cautioned about the rising trend of easy credit among young people for non-essential spending, warning against losing the culture of saving.
Balancing Work, Family, and Personal Passions
Rishi described a flexible work philosophy, emphasizing task completion over fixed hours. Despite leading a company with 10,000 employees, he maintains a calm personal life, spending quality time with his wife and two daughters.
A teetotaller, he rarely goes out on weekends, preferring home-cooked meals and movies. Cooking, especially traditional Bihari dishes like Litti Chokha, is a cherished hobby he shares with his daughters. He also enjoys listening to classic Kishore Kumar songs, a taste he’s passed on to his family.
Commitment to Building India’s Future, One Home at a Time
Rishi Anand summed up his mission with Aadhar Housing’s tagline: “घर बनेगा तो देश बनेगा” — “If homes are built, the nation will be built.” This belief drives his commitment to affordable housing and financial inclusion.
His journey from personal financial hardship to CEO of a company serving hundreds of thousands in the low-income housing market illustrates the power of perseverance, empathy, and vision in transforming India’s housing landscape.
This insightful episode of the Simple Hai! podcast with Vivek Law not only chronicled Rishi Anand’s inspiring journey but also offered valuable lessons on housing finance, customer empathy, and disciplined financial planning—essential listening for anyone interested in India’s evolving affordable housing sector.
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