HDFC to provide Rs. 5 b in loans for low income group

by L. S. A. Wedaarachchi

The Housing Development Finance Corporation Bank of Sri Lanka (HDFC) has allocated Rs. 5 billion to provide fifteen-thousand housing loans this year for the low income category segments and public servants.

CEO and General Manager of HDFC C. A. Sarathchandra said that the bank's mandate was to provide housing loans for the lower and middle income category segment in the country.

The housing problem is one of the major issues in the country especially of those in the low income category.

The HDFC bank has implemented urban sector housing development projects to assist them, because most of the housing and condominium projects cater to niche markets, which are for the high end income group.

To cater to the low income and middle income category, the HDFC Bank has set up a separate unit, HDFC Real Estate Development Company.

Under this scheme it has taken steps go for a condominium project at Edmonton Road, at a cost of Rs. 900 million on a cross subsidiary basis with the government, the General Manager said.

He said that the Avissawella Housing project, close to the Sitawakapura Free Trade Zone will be completed by April.

Three types of houses are available in the Avissawella housing project aimed at the middle incme category. "HDFC is in the housing and real estate sectors and its role is to intervene to control real estate prices in the country. Real estate prices are increasing at an alarming rate which the masses cannot afford, the GM said.

He said that the HDFC's prime duty is to protect the low and middle income group in the country. At present HDFC enjoys twenty per cent market share and it dominates the lower income segment.

HDFC is implementing "the government servants' housing loan scheme" for public sector employees. It has tied up with the Employee Trust Fund (ETF) and provides housing loans at a reasonable interest rate to the private sector employees. HDFC bank has been A rated by Fitch Ratings. It is one of the few public sector organisations which runs with self-generated funds.

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