Category: Housing Finance

Follow the latest trends in housing finance, including home loan rates, mortgage policies, RBI updates, and government schemes. Stay informed about financial products and regulations that impact homebuyers, investors, and lenders in the real estate market.

Housing FinanceLatest Stories

Sammaan Capital Secures $300M Through International Bonds

MUMBAI: Sammaan Capital, formerly known as Indiabulls Housing, has successfully raised $300 million (approximately ₹2,600 crore) through three-year bonds aimed at international investors. This marks the company’s inaugural international bond issuance in its new identity. The fundraising occurred at a yield of 8.95%, representing the first high-yield bond offering from India in the current fiscal year. CEO Gagan Banga stated that the funds will help diversify the company’s funding sources. Following this issuance, 10% of Sammaan’s funding will come from international markets. “We’ve been preparing for this issuance since April, waiting for the right investors, and we have successfully secured…

Housing FinanceLatest Stories

Centrum Capital sells mortgage unit to Weaver for ₹430 crore

NEW DELHI: Centrum Capital Ltd has announced the signing of an agreement to divest its complete stake in Centrum Housing Finance Ltd (CHFL), its affordable housing finance arm, to lender Weaver Services for Rs 430 crore. This agreement, approved by Centrum’s board, is contingent upon shareholder, regulatory, and other commercial approvals, as stated by Centrum Capital. As of June 30, 2025, CHFL manages assets worth Rs 1,640 crore and operates in 100 locations, serving over 18,000 customers. Their offerings include home loans, self-construction loans, home improvement loans, and loans against property. For this transaction, E&Y acted as the financial advisor…

Housing FinanceLatest Stories

Mortgage Rate War Hits Housing Finance Companies Hard

Housing finance companies (HFCs) are under considerable strain due to aggressive mortgage pricing by public sector banks, leading to reduced margins. Although loan disbursals are growing, many HFCs are not experiencing a corresponding rise in assets under management (AUM), primarily because borrowers are transferring their home loans to rival firms. In the June 2025 quarter, Bajaj Housing Finance reported a 0.5% drop in net profit, while Aadhar Housing Finance and LIC Housing Finance experienced growth rates of 10% and 5%, respectively. The recent reduction in lending rates by the Reserve Bank of India, which cut the repo rate by 100…

Housing FinanceLatest Stories

Weaver Services to Raise ₹1,482 Crore from Lightspeed, Premji Invest

Housing finance platform Weaver Services has announced agreements to secure $170 million (approximately ₹1,481.5 crore) in a funding round led by Lightspeed and Premji Invest, with participation from Gaja Capital. This funding round, pending regulatory approval, is amongst the largest recent investments in affordable housing finance. Weaver is committed to a technology-first approach, focusing on underserved segments like self-employed individuals in tier-II and tier-III cities. The company has acquired Capital India Housing Finance as a foundational asset and plans to acquire additional assets to achieve initial scale, currently evaluating various options. Weaver emphasized that this investment will enhance its ability…

Housing FinanceLatest Stories

Housing Finance Firms Scrutinized for Lending Issues

The National Housing Bank (NHB) is intensifying its scrutiny of housing finance companies (HFCs) for violating loan-to-value (LTV) norms concerning high-value home loans, according to sources familiar with the matter. Regulatory inspections by the NHB uncovered instances where loans exceeding ₹75 lakh were approved with LTVs as high as 90%, breaching the established 75% limit. The NHB has instructed lenders to reclassify these loans as non-home loans (NHL). “The regulator has identified several mortgage lenders disbursing substantial amounts for high-value residential properties,” an NHB official stated. “The NHB has communicated with these firms, ordering them to cease such practices and…

Housing FinanceLatest Stories

Banks Expand Home Loan Spreads to Protect Margins

MUMBAI: Banks are raising their spreads above home loan rates to safeguard their margins. SBI and Union Bank of India have increased their mortgage spreads as reference rates decrease. With the repo rate already reduced by 100 basis points this year, further cuts could be on the horizon. Unlike previously, when lower rates primarily benefited new borrowers while existing ones paid higher, the current environment sees new borrowers facing increased costs, despite banks being required by RBI regulations to pass on rate cuts to existing customers. This discrepancy arises from persistent funding costs. Reducing deposit rates remains challenging, particularly for…

Housing FinanceLatest Stories

SBI Raises Home Loan Rates by 25 Basis Points: A Signal?

MUMBAI: India’s largest mortgage lender, State Bank of India (SBI), has raised home loan rates by 25 basis points for new borrowers, indicating a potential shift towards higher interest rates in the housing market. This increase mainly impacts applicants with lower credit scores, as SBI adjusts the upper band of its loan rates. Union Bank of India has also raised its rates, and other public sector lenders may follow. As of late July, SBI’s mortgage rates were between 7.5% and 8.45%. Post-adjustment, new borrowers will face rates between 7.5% and 8.70%. Union Bank of India has upped its rate to…

Housing FinanceLatest Stories

Ummeed Housing Raises ₹250 Crore from BII for Affordable Homes

NEW DELHI: Ummeed Housing Finance Pvt Ltd (UHFPL), based in Gurugram, announced on Tuesday that it has raised Rs 250 crore in funding from British International Investment (BII), the UK’s government development finance institution. This investment aims to enhance Ummeed’s capacity to offer affordable, long-term housing finance to low-income groups across India. The funds will primarily be used for mortgage-backed loans, targeting underserved borrowers and promoting property ownership and financial inclusion. In line with its mission for inclusive growth, Ummeed stated that these loans will facilitate homeownership among beneficiaries. This new capital injection is expected to assist up to 3,000…

Housing FinanceLatest Stories

LIC Housing Finance Q1 FY26 Net Profit Up 4.41%

NEW DELHI: LIC Housing Finance has announced a 4.41% increase in its net consolidated profit for the quarter ending June 30, 2025. The profit after tax reached ₹1,364 crore in Q1 FY26, compared to ₹1,306.40 crore from the same quarter last year, as per a BSE filing. The company reported a net consolidated total income of ₹7,250.16 crore in Q1 FY26, reflecting a 6.67% growth from ₹6,796.85 crore in the previous fiscal year’s same quarter. Tribhuwan Adhikari, the managing director and CEO, stated, “This year has begun positively, as we have lowered lending rates during this quarter following the RBI’s…

Housing FinanceLatest Stories

PNB Housing Finance CEO Steps Down

NEW DELHI: Girish Kousgi, the Managing Director and CEO of PNB Housing Finance, has resigned from his position. Kousgi submitted his resignation on July 30, 2025, to explore new opportunities. The board accepted it with an effective resignation date of October 28, 2025. Additionally, the board noted that Kousgi will no longer serve as a director on the boards of PHFL Home Loans and Services, and PEHEL Foundation, both subsidiaries of the company, effective from October 28, 2025. R. Chandrasekaran, the chairman of the nomination and remuneration committee at PNB Housing Finance, stated, “The board will commence a thorough, transparent,…