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LIC’s housing finance subsidiary sanctions Rs 600 crore to 5 builders

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MUMBAI: At a time when most banks and non-bank lenders shrink back from the actual property sector, the housing finance subsidiary of Life Insurance Corporation of India goes aggressive on developer financing.

In the previous few months, LIC Housing Finance has sanctioned greater than Rs 600 crore to not less than 5 builders together with Shriram Properties, Vatika Group and Radiance Realty, information collated by information intelligence supplier Propstack confirmed. These vary from recent disbursals to refinance offers the place the mortgage lender has taken over loans from different lenders.

LIC Housing Finance sanctioned Rs 225 crore to Shriram Properties as development finance at a floating fee of 13.25%. At least Rs 65 crore of that shall be used to take over an present mortgage from Yes Bank.

The lender additionally disbursed about Rs 54 crore to Vatika Group for making half fee of an Indiabulls Housing mortgage, company affairs ministry information confirmed.

It sanctioned Rs 108 crore to Radiance Realty in September for 2 initiatives, at an rate of interest of 13%. At least Rs 46 crore shall be used to refinance loans disbursed by Kotak Mahindra Prime and Kotak Mahindra Investments. It sanctioned Rs 116 crore to Concast Infrastructure at 12.5% and Rs 100 crore to DN Homes.

A LIC Housing Finance spokesperson stated mortgage sanctions to builders have been being performed on a case-to-case foundation relying upon deserves, and that a few of them are present clients to the lender.

“We have been very selective in lending to builders and exercising due diligence on the projects being taken up for funding,” the spokesperson informed ET. “Our confidence comes from the overall viability of the project after taking into account the sales velocity, credential of the developer, adequacy of the security, marketability of the project, cash flows and strength of other collaterals.”

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