Fullerton India Credit Company, owned by Singapore’s State-run investment firm Temasek Holdings Pte, aims to disburse ₹500-600 crore through its home loan arm in 2016-17.

The wholly owned subsidiary, Fullerton India Housing Finance Company, is expected to start operations by November.

According to Rakesh Makkar, EVP & Head – Urban and Rural Business, Fullerton India, the company (housing finance), which will start with an equity base of ₹100 crore, is expected to breakeven in two years’ time. Housing loan offerings are likely to have an annual interest rate of 12.5-13 per cent.

“We would look to cater to the affordable segment with loan ticket sizes varying to the tune of ₹6 lakh to ₹7 lakh,” he said. “In the first full year of operations, that is, from April 2016 to March next year, we are looking to disburse ₹500-600 crore,” Makkar added.

To start with, operations will begin across West Bengal, Maharashtra, Tamil Nadu, Karnataka and Gujarat. The housing finance company will aim to leverage the network that Fullerton has already established in the country as an NBFC.

Fullerton India currently has 445 branches and caters to a variety of segments, including personal loans, business loans, loans against property, small and medium enterprise loans, rural livelihood and enterprise loans and two-wheeler loans, amongst others.

As on March 31, 2015, its revenue stood at ₹1,011 crore and profit after tax was at ₹301 crore. Nearly, 30 per cent of its business comes from rural areas, and the remaining from urban areas.

The assets under management (AUM) stood at around ₹8,670 crore and capital adequacy ratio was 19.6 per cent. Disbursals in FY15 was at ₹6,830 crore.

“We are hoping to grow our disbursals to ₹10,000 crore this fiscal,” Makkar said.

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