High Recovery Lures Housing Finance Firms To Retail Investors

The housing finance companies (HFC) are now tapping the retail investor to meet their annual disbursement targets, turning their attention from the private developers or the project loans which once made up for most part of the annual disbursements.

Consider this. PNB Housing Finance Ltd (PNBHFL), which used to fully target the private developers till about 1997 for its loan disbursals, now does not give a single rupee to the developers. Instead, about 90 per cent of its loans now are targeted at the individuals and the rest are focussed at the non-resident Indians.