IBEF: November 19, 2019
LIC Housing Financial Ltd has set a target of disbursing Rs 55,000 crore (US$ 7.87 billion) worth loans during the current financial year, according to a top official.
LIC Housing Finance Ltd., Managing Director and CEO Mr. Siddhartha Mohanty said that the loans disbursed during the last financial years was worth Rs 48,000 crore (US$ 6.8 billion).
He added, "We propose to achieve a target of Rs 55,000 crore (US$ 7.87 billion) disbursement. Last year it was Rs 48,000 crore (US$ 6.8 billion)".
The company has so far disbursed Rs 26,000 crore (US$ 3.72 billion) worth loans till date. The company is also planning to bring down the Gross NPA below the level it stood last year.
"Currently, it is at 2.38 per cent. We are very much careful and paying attention to the recovery of loans. Compared to last year we want it to be less. Last year, the (Gross NPA) level was at 1.54 per cent," he said.
As the real state sector is seeing gradual development as affordable housing segment has also shown positive growth, he said, "the PMAY (Pradhan Mantri Awas Yojana) scheme constitutes 26 per cent of the company's portfolio. We are concentrating more and more on that segment." Moreover, he said there was demand for office space, logistics go-downs. "commercial space portfolio constitutes about 7 per cent (for LIC Housing Finance)" he said. According to Mr. Mohanty, there is strong demand to own a house, from people between the age group of 25 and 35 years.
"The age of Home buyers has gone down. Earlier, before retirement one plans to have a house. Before that (retirement) he fulfils educational needs of children, daughter's marriage. But now home incentives are there, government is also promoting this industry," he said.
"Younger people are taking the decision. It is showing an increasing trend. We are also providing loan tenure of 30 years. Normally, the longest home loan term is 20 years, but we are giving 30 years term so that the EMI gets less. Particularly in big cities like Bengaluru and Chennai, people are looking to own a house," he said.
He while attending the Mega Property Fair, said that there are more than 40 builders showcasing over 100 projects ranging from low budge to luxury category.
Customers that are moving forward for housing loans from LIC Housing Finance can gain the full refund of processing fee provided the loan was applied before November 30 and disbursement before December 31, 2019, he said.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.