LIC Housing Finance, a subsidiary of life insurance giant LIC, today said that it will float a Rs 500-crore real estate venture capital fund within 2-3 months.
“We have plan for Rs 500 crore (real estate venture capital fund). It is in final stage. It should happen in 2-3 months,” LIC Housing Finance Chief Executive, Mr V.K. Sharma, said here.
“We have got all regulatory approvals for floating the fund,” Mr Sharma added.
The company has held roadshows for raising money from domestic institutions and high networth individuals. The fund will be raised through LIC Housing Finance Asset Management company, a subsidiary of LIC Housing Finance.
On revision of interest rates in the light of RBI’s hiking policy rate recently, Mr Sharma said the company will soon take a view on the issue. The asset-liability committee of the company will meet and decide on interest rates.
Mr Sharma added, however, that interest rates in the system are likely to soften in the next few months.
The firm has a disbursal target of Rs 25,000 crore for the current fiscal, he said, adding that LIC Housing Finance has been disbursing Rs 200-300 crore per month on average.
On new products, he said the company plans to float three new schemes in the coming months. The company is planning to launch a pure fixed rate housing loan product for the entire loan period.
In September, the mortgage firm, launched ‘New Advantage 5’, under which the interest rate remains fixed for the first five years and thereafter at floating rates.
The scheme is available till December 31, with a condition that the first disbursement should be availed by the customer on or before January 15, 2012.