Tata Capital Housing Finance targets Rs400 crore loans in 2009-10

Tata Capital Housing Finance Limited (TCHFL), a 100 per cent subsidiary of Tata Capital, commenced operations on Tuesday with a target loan disbursement of Rs400 crore this financial year (2009-10).

TCHFL, registered with the National Housing Bank as a housing finance company, intends to focus on mid-income group of Tier I and Tier II cities. The company plans to set up nearly 35 branches by FY 2010-end.

The company has been incorporated with Rs100 crore sanctioned capital, of which Rs10 crore has been subscribed.

''The housing sector is treading a growth path. Floating a home finance company will give us the opportunity to participate in the growing housing sector. In the first year of our operations, we target a minimum loan disbursement of Rs200-400-crore,'' said Praveen Kadle, managing director of TCFHL.

Kadle said that the company is looking at retail and commercial loans at both fixed and floating rates, based on ''industry benchmarks''. Loans would range from Rs2 lakh to Rs2 crore and tenures from 12 months to 20 years. Finance would cover up to 85 per cent of the property value, he added.

The company's would raise funds from internal accruals, NCDs, fixed deposits and ECBs, he said.