DHFL plans to raise up to Rs 7000 crore from banks: Report

Dewan Housing Finance Corporation (DHFL) is reportedly planning to raise around Rs 7000 crore from banks including State Bank of India (SBI) in FY17 by transferring its existing loan receivables as the housing financier plans to cut down borrowing from banks. It has already raised Rs1,152 crore in the first quarter through such bilateral arrangement.

The process of transferring existing loans to banks is known as direct assignment of loans in financial parlance. This is a form of securitization of loans between two parties. It is a process of pooling in loan receivables and placing them with investors for raising funds. The process helps the originator of the loans - in this case Dewan Housing -- in unlocking capital and churning loan portfolios.

Dewan Housing Finance Corporation is among the oldest private sector Housing Finance Companies (HFC) in India.