Aadhar Housing Finance to seek refinance from NHB

On getting refinance facility, Aadhar will be able to bring down the cost of funds which will then be passed on to the borrowers, says company's MD & CEO

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Aadhar Housing Finance, a segment-focussed company set up jointly by DHFL and IFC, would seek refinance facility from National Housing Bank (NHB) as it has completed three years of operation, an official of the entity said.

"We will now apply to NHB seeking refinance facility for our housing loan activity as we have completed three years of operations," Harshil Mehta, MD & CEO of Aadhar Housing Finance said.

On getting refinance facility from NHB, Aadhar would be able to bring down the cost of funds which would then be passed on to the borrowers, he told reporters here today.

At present, Aadhar Housing Finance was charging an interest rate of 10.75% on floating basis for a 15-year term for loans up to a maximum of Rs 12 lakh.

He said once the refinance limit was sanctioned by NHB, the interest rate would come down as cost of funds would decrease.

Aadhar was now sourcing capital from various banks and commercial papers.

Mehta said the company did not have any plan at the moment to raise money from the market as it was adequately capitalised.

Primarily operating in tier II, tier III and tier IV towns and cities, the company extends home loans to individuals having salary within Rs 25,000 per month.

Aadhar's cumulative disbursals at the end of this fiscal is expected to reach Rs 1,000 crore, he added.