Don’t miss the latest developments in business and finance.

IIFL to enter educational loan segment

Image
BS Reporter Chennai/ Hyderabad
Last Updated : Jan 20 2013 | 11:53 PM IST

Financial Services provider India Infoline (IIFL) is planning to enter the educational loan segment by this financial year.

“The education loan segment would cater to higher institutions. IIFL has also entered the healthcare loan segment recently,” Mukesh Kumar Singh, senior vice-president (Gold loans), IIFL, said addressing the media here on Tuesday.

India Infoline Investment Services Limited (IIISL), an NBFC subsidiary of India Infoline (IIFL), is coming up with the secured nonconvertible debentures (NCDs) of a face value of Rs 1,000 each, aggregating Rs 375 crore, with an option to retain over-subscription of up to Rs 375 crore, which would make the total issue size of Rs 750 crore.

In the last three years, the loan book of the company has been growing at 56 per cent, along with the housing and gold loan sector. The mortgage loan segment has grown by 15 per cent in the first quarter this year, and comprises 60 per cent of its loan-book of Rs 3,200 crore, he added.

The loan to GDP ratio in India is 60 per cent, which is much lesser compared with the developed countries, where it is 100 per cent. The mortgage loan to GDP ratio is only 9 per cent, as against around 17 and 20 per cent in Thailand and China. A lot of potential lies in India in these segments, he adds.

For the financial year 2011, IIFL reported Rs 519 crore income and profit after tax of Rs 92 crore (15 per cent growth over the previous year).

Also Read

First Published: Aug 03 2011 | 12:18 AM IST

Next Story