Shriram Housing Finance sees 50-60 per cent surge in loan offtake

The company, promoted by Shriram City Union Finance, had disbursed Rs 1,127 crore in the fiscal ended March 31, 2020. “In the Q1, we didn’t do much business. Despite that, in FY21, we will do about 50-60 per cent more business than what we did in FY20. We will end this year with a disbursement of Rs 1,800 crore,” the company’s MD-CEO Ravi Subramanian said.

In the Q1 of the current fiscal, the housing financier disbursed Rs 77.4 crore, a decline of 68.1 per cent year-on-year, owing to the nationwide lockdown imposed to contain the spread of the coronavirus. In the Q2 of FY21, it disbursed around Rs 520 crore, which was 20-25 per cent more than what it disburses in every quarter, he said. “The biggest tumbling block was COVID-19 in Q1, but we have come back on trajectory. Growth in Q3 is more than Q2, and growth in Q4 will be more than Q3,” he said.

The company’s loan portfolio includes housing loans, loan against property (LAP) and construction finance. While housing finance contributes 60 per cent of the loan disbursement, share of LAP and 

construction finance is 35 per cent and 5 per cent, respectively.