DHFL to target low and mid income segment

DHFL has 14 branches in 14 Telangana and 18 in Andhra Pradesh. It offered home loans, loans for home extension and improvement.

By Author   |   Published: 19th Jan 2017   10:32 am
DHFL
Harshil Mehta, DHFL chief executive officer. Photo: Surya Sridhar

Hyderabad: Dewan Housing Finance Corporation Limited (DHFL), a housing finance company in the private sector, is expecting a 30 per cent increase in its loan disbursements in Telangana and Andhra Pradesh on the back of a robust demand in the next fiscal. Currently, it dispenses about Rs 1,700 a year and its total loan book is about around Rs 6,000 crore, according to Harshil Mehta, chief executive officer.

The demand for housing loans will mainly be due to the rising demand for affordable housing.

It is looking to cater to low and middle income groups, he said adding that Hyderabad has been a buyers’ market for long. This also ensured that the property prices appreciated at a steady pace instead of huge spikes, which are a feature of a speculative market, he said adding that its interest rates will start at 8.6 per cent per annum.

Hyderabad contributed over 30 per cent of the overall home loan business in Telangana and over 15 per cent of the overall home loan business in South India during March to December last year month. While it had non-performing assets pegged at 0.95 per cent of the total lendings, the defaults were small in home loans as most of them were extended to the salaried-class. “The value of the property rises while the loan decreases over time. Customers would not want to lose a house that is higher in value for a loan that is reducing,” he said.

DHFL has 14 branches in 14 Telangana and 18 in Andhra Pradesh. It offered home loans, loans for home extension and improvement, plots, mortgages, projects and non-residential property loans. DHFL also offers SME loans.

He said the liquidity position of banks is comfortable due to the inflow of deposits due to demonetisation and this will help in extending bigger loans.