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» Real Estate Fund from LIC Housing

Date: Sep 4, 2008

Author: ACCOMMODATION TIMES

 S K Mitter, Director and Chief Executive, LIC Housing Finance said LIC Housing Finance will pour a fund of about Rs 350 crore. After gaining the experience with the fund, LIC Housing expects to set up a REIT (Real Estate Investment Trust), said Mitter. Asked if the company would drop interest rates for loan up to Rs 20 lakh, as desired by P Chidambaram, Finance Minister, Mitter said, it may not possible for the company, given firm cost of funds. Around 85 per cent of the company’s loan portfolio is made up of small loans, of less then Rs 20 lakh which incidentally attracts a lower risk weight of 50 per cent. LIC Housing’s exposure to large projects is about 5 per cent of its portfolio, but it wants to double it next year.