By Accommodation Times News Service
Dewan Housing Finance Ltd (DHFL) which is into home loans business will now be getting into business of education loans. ‘’Avanse ‘’ a non-deposit taking Finance company will specialize in providing education loans for higher studies. It will be a hand in hand development as DHFL and Wadhawan Group will be holding stake in company, international finance corporation has also agreed to acquire stake in the education finance company which will result in capital infusion.
Addressing to the media on a new launch the CMD of DHFL Mr. Kapil Wadhwan said, these education loans are complimentary business and not in competing. It is an untapped area with no player’s other then one private player and host of public sector banks. So there is a tremendous opportunity. Avanse would provide loan interest rates over 11.50% which is its prime lending rate. He said that the company expects to maintain spreads at 2.5 to 3%. On whether the company would provide loan with or without security, each case would be dealt with separately. There is no internal norm on how much loan could be given without any collateral.
Adding further said that housing finance business would continue to be the core business for DHFL but Avanse will add to its strength. Going forward he said that the company would have to depend on loans from banks or raise bonds from market to expand their business.