new delhi anil ambanipromoted reliance capital rcap has got the approval from national housing bank nhb for setting up a separate housing finance company rcap is already into the mortgage business through its whollyowned consumer finance arm reliance consumer finance now it will hive off this business into a separate housing finance companythe diversified financial services firm has also got the nod from the rbi for separating the housing finance arm from its existing consumer finance business with all regulatory approvals in place rcap will now be able to get special benefits such as refinance repossession and lower capital adequacy rcap will also get to raise funds through external commercial borrowingsthe approval will help us focus on both the businesses separately also the approval to operate as a housing finance business will help us in getting loans at a cheaper rate reliance capital chief executive officer sam ghosh told et to begin with rcap will focus on giving housing loans in metros and as business grows it will go to smaller citiesrcap is the financial arm of the reliance anil dhirubhai ambani group adag and has interests in asset management insurance stock brokerage commodity exchanges among other activities in the financial services in the consumer finance space the company offers personal loans auto loans and business loans among others