IIFL Home Finance raises Rs 300 crore from Syndicate Bank
Transaction likely the first after RBI enhanced liquidity measures for NBFCs
In the revised on-lending policy, the central bank has said that “onlending” by NBFCs/housing finance companies toward agriculture, micro and small enterprises (MSEs) and housing sectors can be classified as priority sector lending (PSL) by banks.
“We have extended such credit to IIFL Home,” said Mrutyunjay Mahapatra, MD & CEO, Syndicate Bank confirming the matter. “Lending to IIFL Home marks the first under the new RBI policy.”
IIFL Home Finance, a direct subsidiary of IIFL Finance, funds lowcost housing, a focus area for the government that aims to attain “Housing for All by 2022”. This credit line will help the company lend to small businessmen in the MSME segment. It also lends against property to smaller companies.
“Looking at the recent market scenario, this will improve the cash flow in the sector,” said Monu Ratra, cheif execurtive officer, IIFL Home Finance Ltd.
“More than 75 per cent of our retail loans qualify for PSL and this will be our way of business for the future too,” he said.
RBI has also raised the limit of home loans under PSL to Rs 20 lakh per borrower from Rs 10 lakh.
IIFL Home Finance has helped more than 30,000 families avail benefits under different government programs. For example, the company has, to date, disbursed loans to more than 19,000 customers under the Swaraj Home Loan program for the informal segment.
IIFL Finance was constituted by the restructuring of IIFL Holdings, resulting in three verticals — IIFL Finance, IIFL Wealth, and IIFL Securities.
The promoter group, led by chairman Nirmal Jain, holds 29 per cent in IIFL Finance, and Canadian billionaire Prem Watsa’s Fairfax owns an additional 26.5 per cent.