Tata Housing Fin eyes 70% growth next fiscal

Tata Capital Housing Finance (TCHF), the wholly-owned subsidiary of Tata Capital, is optimistic of growing its current home loan portfolio by about 70 per cent in 2013-14, given traction witnessed since inception four years ago.

The four-year old TCHF had a loan book of Rs 4,000 crore as of December 31, 2012, including an exposure of about Rs 100 crore to builders, according to its MD R Vaithianathan. The loan portfolio was about Rs 1,200 crore as of March 31, 2011 and Rs 2,200 crore as of March 31, 2012.

He told Deccan Herald that due diligence of properties is key to its business model. “It is done by our team of engineers, valuers and lawyers who evaluate projects from legal, eco-friendliness and technical aspect. It gives home loan buyers comfort and validation.”

While Bangalore accounted for about Rs 425 crore of the total loan book of Rs 4,000 crore, six cities comprising Mumbai, New Delhi, Chennai, Indore and Chandigarh, besides Bangalore, accounted for about 60 per cent. From a customer profile viewpoint, about 60 per cent of its borrowers are salaried people. He added that the delinquency rate at TCHF, where the average quantum of loan is about Rs 27 lakh, is about 0.1 per cent.

On assessing credit history of applicants using the database of Credit Information Bureau (India) Limited, or CIBIL, he said that the company does use its ratings as one of the criteria to assess borrowers, but declined to comment on rejections attributable to CIBIL data.

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