RAAS Affordable Housing Finance expects nearly three-fold rise in its lending to Rs 200 crore by the end of the current fiscal on account of rising demand in the low ticket housing.
“The outstanding loan was Rs 70 crore last fiscal which is expected to increase to Rs 200 crore by the end of the current fiscal,” RAAS Affordable Housing Finance Managing Director Arvind Hali told PTI.
Despite slowdown in the property market, the demand in the affordable housing segment is still high and therefore the company would witness such sharp growth, Raakhe K Tandon, promoter and executive director of the company said.
The company which incorporated in 2014 focuses primarily on the self employed persons or the persons who are into small business, he said, adding the average loan size is Rs 12-15 lakh.
Asked about matching capital requirement to sustain high growth, he said, currently the initial paid up capital is of Rs 100 crore but towards the end of the next fiscal there may be requirement of Rs 100 crore.
The promoters have made commitment to provide another Rs 100 crore as equity capital towards the end of the next fiscal for next phase of growth, he said.
The company plans to double its network to 30 branches by the end of the current fiscal in the area of operation primarily NCR, Haryana and Rajasthan.
Besides, the company has tied up with various banks for meeting its resources for expansion of its business.
Asked about pricing of loan, he said, “we are following a competitive, yet a risk-based pricing module. This pricing module is highly scientific with a negligible element of subjectivity. This module enables the categorisation of the customers between low, medium and high risk to enable matching against applicable ROIs.”