Close to 54% Portfolio Covered Under Clss Under The Pmay
Plans To Set Up 30 Offices Across In The Next Three Years
Mumbai, February 23, 2017: Khush Housing Finance (KHFL), a leading housing finance which focuses on EWS and urban poor, today announced that the promoter group has infused additional Rs 25crore in company’s equity capital, thereby taking company’s equity capital to Rs 50 crore. These additional funds will be available to the company; till such time that the sanctioned borrowings are drawn down.
KHFL is promoted by the Om Kush Group. Mr Amit Magia, CEO & Managing Director, KHFL said,”We are currently in talks with couple of public sector banks and private sector banks to raise additional funds requirements for our next phase of growth. In the interim period, a few large NBFCs have also evinced interest in funding us and we would be able to close these transactions very shortly. “
KFHL, which commenced its lending operation January 2016, largely operates under the PradhanMantriAwasYogna (PMAY) in the cities and towns designated by NHB. As on January 31, 2017, the company had done business of Rs 52 crore.
Currently, the company has close to 500 customers and plans to expand its customer base to around 700 by March 31, 2017. It also plans to increase the total business size to Rs 80 crore during the same period.
It plans to set up 30 offices across the country in the next three years. “We are also looking to expand our presence in the other states by opening new offices in the coming months. It currently operates out of 10 branches – 8 in Maharashtra (Thane, Virar, Pune, Kolhapur, Aurangabad, Ahmednagar, NashikandBorivali) and two in Gujarat (Surat& Ahmedabad). “This is a scalable business and we are currently geared to garner a business of Rs. 5 crore per month/per branch, inform Amit Magia.
Close to 54 per cent of KHFL’sportfolio is covered under the Credit Linked Subsidy Scheme (CLSS) under the PradhanMantriAwasYogna (PMAY). This means that these eligible customers receive interest subsidy under the PMAY of approximately Rs. 2.20 lakhs per customer.Effectively, this would mean that the EMI payable by these customers covered under CLSS will be much less with their loan outstanding coming down by the subsidy amount. KHFL’s Loan–to–Value (LTV) improves significantly thereby improving the quality of our Asset.
AddsMr. Amit Magia, “To the customers too, it would mean significant benefits. The property – post receipt of CLSS – will appreciate by 20-30% and he is motivated not to default on the loan – as a default would mean he will lose the CLSS benefit which has to be returned. “
Corporate Comm India(CCI Newswire)
