Mumbai: ICICI Home Finance Company (HFC) Ltd has set itself an ambitious target of growing its loan book to Rs30,000 crore in next three to four years, riding on the wave of low-cost housing segment, according to a top official of the lender.

Currently, the loan book stands at Rs10,000 crore.

In an interview, Anup Bagchi, chairman of ICICI HFC, said that leaving behind the chatter around a potential sale of the company, the lender has charted a growth path of increasing its network and loan book with focus on customers from lower and middle income groups.

In November 2017, Mint had reported that Everstone Capital-backed IndoStar Capital Finance Ltd had called off a deal to acquire ICICI Home Finance Co. owing to synergy issues.

According to Bagchi, starting fiscal 2019, there will be divergence in the focus area of the housing company and ICICI Bank. So far, the product offerings of both entities were similar.

“Now, it (HFC) will primarily focus on assessed income mortgage," he said, adding it will target borrowers with ticket size of Rs15 lakh and below. The target is also to have the share of these loans in the total book to be at least 75% in three to four years.

Bagchi explained that assessing this category of borrowers, based on income, security and saleability of security, requires a skill set, which is best suited in the HFC format.

To achieve its aim in 18 months, ICICI HFC plans to increase its reach to 1,000 locations from current 400. The lender is adequately capitalised, Bagchi said.

He said the government’s thrust on ‘Housing for all by 2022’ had opened big opportunities for the housing sector. This initiative also incentivises borrowers, with subsidy payment under Pradhan Mantri Awas Yojana, developers as well as lenders.

Bagchi also said that the growth of housing sector in its targeted semi-urban and rural areas is growing faster than metros.

Separately, ICICI HFC will also roll out a consumer durable financing product this financial year.

He said there is good headroom for such type of financing for the HFC and the rollout will be in tie-up with retail brands in chain format.

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