LIC Housing Finance: Boosting credit growth and margins with affordable loans.

TLDR:

– LIC Housing Finance is shifting its focus to the affordable housing segment in order to drive loan growth and improve margins.
– The company expects a significant increase in demand for loans of up to ₹50 lakh.

LIC Housing Finance, a mortgage lender in India, is changing its strategy to focus on the affordable housing segment as it seeks to boost loan growth and improve margins. The company has traditionally preferred to lend to salaried customers with strong credit scores, but now sees potential in the affordable segment. Currently, affordable housing loans make up only 8-10% of LIC Housing Finance’s portfolio, but the CEO expects this to increase to 20-25% in the next two years. The company recently underwent a technology upgrade and organizational restructuring, and the CEO believes that these changes, along with a focus on the affordable housing segment, will lead to better loan book growth in the coming years.