LIC Housing Finance Ltd sees uptake in home loans

BENGALURU: Though the real estate sector in the country has slowed down, LIC Housing Finance Ltd (LIC HFL) is seeing a surge in demand for housing loans for the budget to mid-income home market.
The country's third largest housing finance company reported a 25% growth in home loan disbursements at the end of the September quarter over the same period a year ago.The September month registered a 40% growth. The lenders average loan dispersal amount is Rs 20 lakh.
Sunita Sharma, MD and CEO, LIC HFL, who was in city, said at the end of the ongoing fiscal the company is poised to post an over 20% growth in loan dispersals as against the previous fiscal's growth of 18%-19%.
"The positive sentiments of the consumer are showing. In the period before the new government came to power the end-user segment within real estate was not really willing to make a decision. But after a stable government has assumed power, this end-user segment is taking decisions. And that's the big difference," said Sharma.
The growth in loan dispersals has helped LIC HFL grow its market share from under 10% to a little over 11%, in the last 12-months. State Bank of India and HDFC are other two leading players in the home loan space.
Sharma said the finance ministry's proposal of housing for all by 2020 and the incentives given to the affordable housing segment will shore up real estate activity in a big way. She said for the overall market to grow there was an urgent need for an independent real estate regulatory authority. "This will help bring in more transparency in builder transactions which is important for the development of the market and building confidence among buyers."
Home Expo: The fifth edition of LIC HFL Nimma Mane home expo is happening on 13 and 14 December at the Kormangala Indoor Stadium. The current edition will see the participation of 80 plus developers, showcasing more than 300 properties. LIC HFL is providing spot approvals for home loans and is reducing the processing fee by Rs 5,000.