LIC Housing Finance hopes to record double-digit growth this fiscal, supported by the return of home loan growth to pre-Covid-19 levels, government push, revival in affordable housing segment, and its new products and support measures.
“As of now, sentiments are improving day by day. We expect a positive rub-off in the realty space, with the overall economy opening in phases. A big chunk of an upwardly mobile middle-class segment, urbanisation rates, and the emerging concept of work from home will be able to sustain the demand. At the current rate, we can look forward to a double-digit growth towards the end of the current financial year,” Siddhartha Mohanty, MD and CEO of LIC Housing Finance, told. He is of the view that people with stable earnings have not been impacted greatly, and are looking to cash in on this opportunity – it is a buyers’ market.
Affordable housing has seen the fastest recovery post pandemic due to the inherent demand and sops given by the government under PMAY CLSS in the form of subsidy.
“PMAY CLSS (Pradhan Mantri Awas Yojana Credit Linked Subsidy Scheme) is a major driver of home loans today in the sector. For LICHFL, around 47 per cent of our business by value is from the Top 7 metros, while the rest is from other centres. PMAY constitutes nearly 30 per cent of our business,” said Mohanty.
Meanwhile, its product Griha Varishtha, which caters to individuals covered under defined pension benefits, appears to be receiving good response. Close to Rs. 1,000 crore has already been sanctioned under the scheme since its introduction in July.
