NEW DELHI: Art Affordable Housing Finance (AAHF) has raised Rs 25 crore from institutional investors. It plans to infuse nearly Rs 100 crore in the next financial year, most of which will be used to expand its business, said Arvind Hali, managing director and CEO of the company.AAHF had previously raised Rs 350 crore in 2017 through the institutional investors.
“We hope to expand into Rajasthan and take the total operational locations to 65-70 by 2018,” said Hali.
AAHF currently has a book size of Rs 400-500 crore which it plans to increase by Rs 20,000-30,000 crore in the next 2-5 years.
The company is however not keen to enter into smaller ticket size segment (below Rs 5 lakh). “The operating expense in equal whether you are lending Rs 5 lakh or Rs 30 lakh. Along with this, in this particular segment there is not much clarity on title documents,” he said.
According to Hali, the government should provide some kind of compensation on the upfront cost to housing finance companies to move into the low-cost segment or the volumes of housing in the segment must increase exponentially, which is currently highly unlikely, to make it viable.