Muthoot Homefin, a subsidiary of Muthoot Finance, plans to raise up to Rs 800 crore in the next fiscal after its more than expected performance in the December quarter despite the cash crunch situation in India due to demonetisation.
By December, the housing finance company is able to disburse Rs 175 crore and planning to settle at a total of Rs 400 to Rs 450 crore during the entire fiscal. With this ample achievement and its ongoing expansion in the southern part of the country, it targets for higher sum of Rs 800 crore to raise in the next fiscal through bank borrowings and from capital market.
Muthoot Homefin lends only to affordable home loan customer with average ticket size of Rs 11 lakh on the loan book. The end users need to contribute almost 90 per cent of its loan book. The company actively borrows funds from banks for onward lending to customers. It is going to begin its new venture within south India region by starting its business operations in the states of Tamil Nadu, Andhra Pradesh, Telengana and Karnataka in the next fiscal.
Ramratthinam S, the CEO of Muthoot Homefin, confirms that they have strategic plan for marketing the latest announcement of the interest subsidy schemes on loans up to Rs 12 lakh for rural and urban housing.
“We are also targeting builders who are executing projects in these ticket sizes and would enter into a tie up with them by approving their projects,” he adds.
Source: ET Realty