S Ramabadran, executive director of the company told FE that SHFL will be taking a fresh Rs 50 crore credit line from IFC by January 2004. The interest rate will depend on the swap ratio which prevails during the time of availing the loan. The company had already availed a credit line from IFC to the tune of Rs 50 crore which was fully hedged.
He said, National Housing Bank (NHB) has also opened a Rs 150 crore additional refinance window to SHFL at an interest rate of 6.9 per cent. We are planning to place the proposal before the board and will start drawing the money from next year depending on our business requirements, he said. The company had drawn Rs 100 crore as refinance from NHB sometime back.
Our idea is to a have a proper mix of funds which includes bank loans, securitisation deals, non-convertible debentures (NCDs) and international funding, he said adding we will soon come out with our maiden securitisation deal for 50 crore of housing finance receivables. The deal will be on private placement basis and without recourse. We are in the process of getting the deal rated. Institutional investors, banks have already shown interest in the deal, he added.
The company has set an ambitious target of Rs 650 crore of approvals and Rs 450 crore of disbursements during the current fiscal. As of October, SHFL has approved Rs 275 crore and disbursed about Rs 200 crore.
He said, the company is focussing on providing value added products to its customers. Earlier SHFL provided free personal accident insurance cover and property insurance cover at low cost to customers. As a value addition, it has now started offering home contents insurance and SBI life insurance cover on optional basis to customers.
SHFL is also looking at tying up with more builders for offering home loans. Under this kind of agreement, the company will approve a project and offer home loans for individuals who are prospective buyers of the property. We will not offer loans to builders for their projects, he said.