Chennai: LIC Housing Finance plans to float a fund of about Rs 350 crore. After gaining experience with the fund, LIC Housing expects to set up a ''REIT'' (Real Estate Investment Trust, which is a mutual fund for investing in real estate projects.) LIC Housing sanctioned Rs 7,385 crore in the current year up to February 29 and disbursed Rs 5,941 crore. Sanctions and disbursements grew 51 per cent and 41 per cent respectively over the corresponding periods last year.
LIC Housing does not take any refinance from NHB, which according to Mr Mitter, is not cheap. Nor is the company (as any other housing finance company) allowed to borrow from overseas markets. Close to 85 per cent of the company''s loan portfolio is made up of small loans, of less than Rs 20 lakh - which, incidentally attracts a lower risk weight of 50 per cent. LIC Housing''s exposure to large projects is about 5 per cent of its portfolio, but it wants to double it next year.
LIC Housing does not take any refinance from NHB, which according to Mr Mitter, is not cheap. Nor is the company (as any other housing finance company) allowed to borrow from overseas markets. Close to 85 per cent of the company''s loan portfolio is made up of small loans, of less than Rs 20 lakh - which, incidentally attracts a lower risk weight of 50 per cent. LIC Housing''s exposure to large projects is about 5 per cent of its portfolio, but it wants to double it next year.
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