Aptus Value Housing targets low income affordable HFC segment

CHENNAI: Chennai-based Aptus Value Housing Finance India, promoted by M Anandan, former MD, Cholamandalam Investment and Cholamandalam MS General Insurance, plans to focus on low income and affordable housing finance segment in the suburbs near metros besides urban and semi-urban centres in the south.

It will cater to the needs of informal sector clients ( small traders, fruits, vegetable, milk vendors and other self employed people), who may not have the complete documentary evidence of their income and not able to access mainstream banks and other HFCs, M Anandan, Aptus CMD said on Thursday.

"We will give them a loan of Rs 10 to Rs 20 lakhs for period not exceeding 15 years. The interest band will be 13 to 14%. As we go along, we will drill down to provide a loan of Rs 3 to Rs 10 lakhs to cover lower income groups."

In the first year of operation this year (August to March) it plans to disburse Rs 125 crore. The NHB approved Aptus opened its first branch at Madipakkam, a suburb in Chennai on Thursday. By next month, it will add four branches. Before March end it will open 20 branches in the State..

He said other than bodies like Hudco, no specialised institution caters to the needs of the low income segment. The focus of HFCs has so far been on serving the formal and high end housing needs leaving the demand from low income and affordable housing segment unmet.

Aptus has an initial capital of Rs 32 crore with Mr Anandan holding 70% stake. The rest is held by V P Nandakumar, Chairman & CEO of Thrissur-based Manappuram group (15%), Shilesh Mehta of Granite Hill capital partners (8%) and other investors. Anandan said while it is talking to banks to raise debt, Aptus has offers from PE funds for investing upto Rs 100 crore.