Date:15/10/2004 URL: http://www.thehindubusinessline.com/2004/10/15/stories/2004101501991900.htm

Back LICHF does brisk business in Pune

Our Bureau

Pune , Oct. 14

REPLACING the existing system with the hub-and-spoke model seems to have fetched dividends for LIC Housing Finance Ltd, with business picking up in the Pune region.

The Pune region, which shifted to the new methodology since August this year, has seen its business grow from Rs 10 crore per month to Rs 18 crore this October, said Mr D.R. Muralidharan, Director, Pune Operations, here on Thursday. This figure would soon change to Rs 25 crore once the entire back-end system was in place, which might take a couple of months, he said.

The Pune hub would cater to the markets of Nasik, Jalgoan, Goa, Kolhapur, Pimpri-Chinchwad and Pune.

Mr Muralidharan said the previous fiscal had also witnessed increased disbursement in its Apna office loan, which the company introduced in 2000. The rates for the Apna office is 9.5 per cent floating and 10 per cent fixed.

The disbursement for 100 proposals in Pune, he said, was carried out the last fiscal and this fiscal's target was 300 disbursements. So far, about 95 disbursements were sanctioned. Mr S. Nallakuttalam, Regional Manager, Western Maharashtra, LICHF, said that in addition to the various loans offered, the company had also introduced, in conjunction with LIC, group insurance cover for takers of the housing loans. The new insurance scheme, called Griha Suraksha, was available on payment of a one-time premium. Interest rates, Mr Nallakuttalam said, would be at a floating rate of 7.25 per cent as against the 7.5 per cent currently on offer. The fixed rate would be 8 per cent.

Elaborating on Griha Suraksha, he said the insurance cover would be available to the extent of the loan outstanding at the beginning of each year and the claim was payable on the death of the member. The insurance premium could also be advanced as part of the housing loan by LICHF, he said. No medical examination was required for outstanding loan of up to Rs 10 lakh and members aged up to 45 years, he said.

Mr Nallakuttalam said the company was targeting disbursement of Rs 5,000 crore on an all-India basis and was envisaging a turnover of Rs 1,000 crore from the Western region.