LIC Housing Finance is likely to introduce a separate arm for undertaking home loans business in the North-Eastern part of the country. It is planning to launch this proposed arm in the nature of a special purpose vehicle (SPV), which will operate in acquisition and financing of specific assets in the North-East. A SPV is a bankruptcy-remote entity whereby its insolvency will have marginal or no impact on the parent company.
The entity has witnessed increase in home loan demand from women with its exclusive home loan scheme for women, ‘Bhagyalakshmi’. It has sanctioned almost 40% of the loans to women in the January-March quarter. Out of the Rs 7,842 crore home loan amount sanctioned in the quarter, women borrowers, numbering 13,700, accounted for Rs 3,154 crore.
