DHFL plans to float housing finance arm with IFC

Leading mortgage lender Dewan Housing Finance (DHFL) plans to float a housing finance subsidiary targeting the low-income segment in a joint venture partnership with International Finance Corporation (IFC).

The joint venture, in which Dewan Housing will have around 80 per cent stake, is expected to get operational in the next few months. Both companies are likely to jointly announce the joint venture in the next few days.

"DHFL will have a majority holding in the company. The equity holding of IFC in the JV will be 20 per cent. The idea of floating the JV is to focus on the low-income segment, where we see a great potential to explore," Dewan Housing Chairman and Managing Director Kapil Wadhawan told reporters here.

The proposed company, which will focus more on states where low-income population is more, plans to disburse loans up to Rs 5 lakh and would target those whose monthly income is as low as even Rs 3,500-Rs 4,000, Wadhawan said.

DHFL is currently in the process of applying for the required regulatory clearance from the National Housing Bank he said.

Recently, Kerala-based Muthoot Pappachan Group had announced its plans to set up a homeloan subsidiary in the affordable housing segment and is expected to seek the necessary regulatory clearance for the project soon.