Indian FinTech housing finance company disburses INR 70 bn in loans under PMAY

By Edil Corneille

Today, Gurgaon-based IIFL Home Finance Ltd., a housing finance company in the affordable housing segment, said that it has approved loans worth about INR 70 billion to 42,500 beneficiaries under the Credit Linked Subsidy Scheme vertical of Pradhan Mantri Awas Yojana (PMAY – CLSS) in India.

The subsidy amounting to over INR 10 billion has been facilitated to these beneficiaries, who belong to the Economically Weaker Section (EWS), Low Income Group (LIG), and Middle-Income Groups (MIG).

Out of the total subsidy of INR 10 billion, over INR 8.7 billion have been provided to families/ beneficiaries in EWS/ LIG category. This is 87 percent of the total subsidy provided by the company.

Monu Ratra, CEO of IIFL Home Finance said, “We are absolutely aligned to the vision of Ministry of Housing and Urban Affairs (MoHUA), Government of India towards Housing for All. We have seen a significant revival of demand for Affordable Housing in the last 3 months. Rather, this pandemic has made people realize the importance of having their own house with good living and hygienic conditions. Hence, we are highly optimistic of Affordable Housing in future as well.”

IIFL Home Finance Ltd. mentioned that as a FinTech housing finance company, it is dedicated to make the journey of owning a home as seamless as possible. The company has attributed its success in reviving its business in COVID-19 times to its technology system. The technology-driven initiatives have helped in the smooth functioning of business activities even during the pandemic. With advanced analytical tools and automation, IIFL Home Finance Ltd. has made credit underwriting, appraisal, and collection processes faster and accurate.

Under the scheme, homebuyers with Annual Household Income of up to INR 1.8 million can avail the benefit of the subsidy under the PMAY (U) scheme on their home loans to the extent of INR 267,000 subject to meeting of other eligibility criteria laid by MoHUA. The scheme is aimed at achieving the government’s objective of ‘Housing for All’.

IIFL Home Finance Ltd’s small-ticket size Home Loan product, Swaraj Loan, is said to foster financial inclusion for the underserved segment of the society. It is said to cater to a vast community of first-time home buyers who may or may not be supported by formal income documentation.