DHFL sees strong growth from affordable housing

As encouraged by the government’s efforts for affordable housing and expansion in the market, housing finance company DHFL prospects for strong growth prospects in tier-2 and 3 towns across the country. The company reported loan disbursements worth Rs. 9,950 crores in the second quarter of 2017-18, an increase of 50.6 % over the corresponding period of the previous year.

“The government has laid a very strong foundation for the affordable housing industry over the last few quarters, acknowledging the immediate need for India to respond to the huge demand for affordable housing.

“The ‘Housing for All by 2022’ initiative is a tremendous undertaking that is set to positively impact India’s mortgage-to-GDP ratio,” said Harshil Mehta, Joint Managing Director and CEO, DHFL.

The Cabinet have increased the carpet area of houses under the government’s affordable housing scheme. In the middle income category of Rs. 6-12 lakh per annum, the carpet area was raised from 90 to 120 square meters (or 968 sq ft to 1,184 sq ft).

While for the income category of Rs. 12-18 lakh per annum, the carpet area was increased from 110 sq mt to 150 sq mt (or 1,291 sq ft to 1,614 sq ft).

“We are aggressively expanding our credit facilities, focusing on developing greater financial awareness for the segment and creating the right products through customization, to become the preferred choice for home loans and deposit products for LMI customers.

“We have been expanding our outreach specifically in tier-2 and 3 towns that are India’s new growth engines. We are optimistic about achieving about 30 per cent growth on home loan disbursements this fiscal from Gujarat,” added Mehta.