LIC Housing sees record monthly disbursals in Sept

MUMBAI: Mortgage lender LIC Housing has surpassed pre-Covid business levels in September and expects the momentum to continue with the onset of the festive season. The lender is also targeting double digit growth for the full fiscal year.

“September was excellent not only for LIC Housing but also for other housing finance companies because somehow I observed sentiment is back,” said Siddhartha Mohanty, MD, LIC Housing Finance told ET. “September was the best as compared to any other September’s for the company as a whole. This momentum will continue in coming days because of the festive season and October November we will observe further growth in individual retail segment.”

Mohanty also said that while business has seen a substantial dent in the months of March and April, the sentiment had turned and customers were no longer delaying buying decisions buoyed by low interest rates and attractive festive offers.

“Mumbai we are registering good growth because of stamp duty reduction,” he said.

In July, the mortgage lender had slashed home loan rates to an all-time low interest rate of 6.9 per cent for home loan borrowers. The rate of interest for home loans up to Rs 50 lakh starts from 6.9 per cent for borrowers with CIBIL score of 700 and above. For a similar score, the rate of interest is 7 per cent onwards for loan above Rs 50 lakh.

The non-bank lender has also hired Boston Consulting Group to undertake a digital transformation that would help it to source and process almost 95 per cent loans digitally against 35 per cent presently. The project aims to improve efficiencies at every level of the organisation and will be implemented over the next 21 months.

BCG would help LIC housing finance to strengthen processes across all verticals, deepen customer engagement and adopt technology to build capacity.

“We are investing in this project with long term objectives that would generate more stakeholder value and expand geographies,” Mohanty said.

“The ultimate objective is to organize and automate every facet of customer interaction to deliver elevated customer experience.”