LIC Housing Finance has advised 14 real estate developers to seek finance from the Alternative Investment Fund for last mile funding.
Last year the government has set set up a ₹25,000-crore bailout fund to finance 1,600 stalled housing projects.
The government has put in ₹10,000 crore in the alternative investment fund (AIF) while State Bank of India and Life Insurance Corporation have extended ₹15,000 crore.
“We have some eligible 14 projects for the alternate investment fund which was created last year. We have advised those developers to be in touch with SBI Caps and the process has started,” LIC Housing Finance MD & CEO Siddhartha Mohanty said at the sidelines of an event. He said the company’s exposure to these projects is about ₹1,100 crore.
“Those projects are eligible but it takes time because project completion is not an overnight job. It takes time for a lender to appraise and it is construction-linked. These projects need last-mile funding. We are experiencing some growth in the sector; the slowdown has gradually gone away and things will improve,” he added.
The home financier has developed a mobile application, in partnership with Google Cloud, to reach out to a broader set of customers with an aim to minimise the loan application process.
The application will provide instant eligibility for pre-approved home loans, based on know-your-customer and other data provided by applicants.