LIC Housing Finance is part of 14 projects eligible for the last mile funding under the alternative investment fund (AIF) created in 2019.
Siddhartha Mohanty, MD & CEO, LIC Housing Finance, said that the exposure to these projects is around Rs 1,100-1,200 crore.
"We do not have any joint lending or any consortium lending. We have some 14 projects (eligible) for the alternate investment fund. We have advised those developers to be in touch with SBI Caps and the process has started," said Mohanty.
He added that while the projects are eligible, it is time consuming because completion is not an overnight job. Mohanty said that lenders also take time to appraise such projects, but added that some growth is being seen in the sector.
In November 2019, the Cabinet approved the creation of a 'professionally managed' Rs 25,000 crore fund for boosting stalled middle and low-income RERA registered housing projects that are networth positive.
Here, the government’s share is Rs 10,000 crore (in the AIF) while State Bank of India and LIC’s contribution is Rs 15,000 crore, taking the total size to Rs 25,000 crore.
The Alternative Investment Fund (AIF) can be utilised even by the projects which have been declared non-performing assets or are facing insolvency proceedings.
LIC HFL's new home loan platform
Mohanty was speaking on the sidelines of an event where LIC Housing Finance has adopted Google Cloud for processing its home loan applications. The new application is aimed at simplifying getting home loans.
Mohanty said that the new application will enable them to speed up the process of granting loans and also help beneficiaries avail related services.
The home loan application is compatible with both Android and iOS and is built on a microservice-based architecture that runs on Google Cloud Kubernates Engine.
"There is a demographic shift in real estate. Ages 25-30 years are looking to buy property. For this, one needs to be innovative and agile in the delivery system. Customer acquisition methods are also changing," said LIC Chairman MR Kumar.
The mobile application will provide instant eligibility for pre-approval home loan based on KYC and other details provided by applicants. The application can also be used by LIC Housing Finance agents in the field to provide real-time services.
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