LICHFL unveils Rs 500cr urban infra fund

Mumbai : The renowned housing financer, LIC Housing Finance Limited (LICHFL), has set aside Rs. 500cr to launch venture capital fund for urban infrastructure development and the company is also simultaneously launching a pure fixed rate housing loan product, Chief Executive Officer, V K Sharma said, adding that the company is targeting a loan disbursement of Rs. 5,500cr during the current fiscal mainly in the southern states as against Rs. 4,125cr disbursals achieved during the corresponding period in the previous fiscal. In fact, the increase in interest rates is currently squeezing its margins as it did not increase the rates when the central bank revised them last time but in case RBI goes for a further rate hikes the company will be left with no option but to hike its rates. But there would be no more than two upward revisions in the interest rates beyond that and they may eventually come down in the near future. The company is charging 10.15 percent for loans up to Rs. 20lakh and 10.75 percent for above this amount on floating rate basis.