Dewan Housing Finance Corporation Limited (DHFL) last week announced the launch of operations for Aadhar Housing Finance Pvt Ltd , which is looking to target the ‘bottom of the pyramid’ home loan space in the state of Uttar Pradesh and it’s surrounding regions.
Aadhar Housing Finance
Aadhar Housing Finance will launcing operations first in Uttar Pradesh and later on expand it’s operations to Bihar, Jharkhand, Madhya Pradesh, Orissa and Chhattisgarh. Aadhar Housing Finance will be looking at providing loans up to Rs 6 lakh, besides project loans for developing low-cost housing. The company intends to partner with many state governments to launch new low housing schemes which will benefit the urban poor.
Uttar Pradesh Microhousing Demand
According to a market survey conducted by the company , Uttar Pradesh, especially Lucknow has the maximum potential in low-cost housing. According to it’s estimates, there is a shortfall of about 2.5 million low cost housing units. Aadhar CEO Harshil Mehta noted that there was overwhelming demand for housing units costing up to Rs 6 lakh, but there was a supply crunch.
Aadhar Housing Finance will be jointly promoted by DHFL and International Finance Corporation, which is a part of the World Bank Group. IFC will hold 20 % equity in Aadhar, while DHFL and its subsidiary DHFL Vysya Housing Finance will hold the remaining 80 % equity.