Shriram Housing Expects 50-60% Increase in Loan Disbursement
Mortgage lender Shriram Housing Finance is looking at around 50-60 per cent increase in loan disbursement to Rs 1,800 crore in the current financial year, a top company official said. The company, promoted by Shriram City Union Finance, had disbursed Rs 1,127 crore in the fiscal ended March 31, 2020.
“In the first quarter, we didn’t do much business. Despite that, in FY21, we will do about 50-60 per cent more business than what we did in FY20. We will end this year with a disbursement of Rs 1,800 crore,” the company’s managing director and CEO Ravi Subramanian told .
In the first quarter of the current fiscal, the housing financier disbursed Rs 77.4 crore, a decline of 68.1 per cent year-on-year, owing to the nationwide lockdown imposed to contain the spread of the coronavirus. In the second quarter of FY21, it disbursed around Rs 520 crore, which was 20-25 per cent more than what it disburses in every quarter.
In the current financial year, he sees growth coming majorly from the housing loan segment.”Home loan is where we will build our books. More than people buying properties, a lot of people are extending their existing properties by building another room or two on their terrace. The self-construction deal is actually seeing an increase in the tier-2 and 3 cities. And I see that contributing a lot more to the growth this fiscal,” Subramanian said.
The mortgage financier is also looking at raising Rs 400-500 crore in the third quarter, which would largely be in the form of bank borrowing and securitisation transactions.