Aspire Home Finance gets ICRA rating upgrade
Aspire Home Finance gets ICRA rating upgrade
Mumbai, 21st March’16 : Aspire Home Finance Corporation Limited (AHFCL), a subsidiary of Motilal Oswal Financial Services Ltd, is proud to announce that ICRA has upgraded its long-term rating for Non-Convertible Debentures and Sub-ordinated Debt Programme from [ICRA] A+ (Positive) to [ICRA] AA- (Stable).
Speaking on the occasion, Mr. Kalpesh Ojha, CFO of AHFCL said, “We are extremely happy to have received this upgrade which is a validation of AHFCL’s strong asset and liability program managed and operated by experienced professionals from home finance domain. AHFCL has a diversified borrowing mix including term loans from Banks / Financial Institutions, Non-Convertible Debentures and Commercial Papers. The loan funds net of repayments stand at Rs.1900 crs thereby complementing to the growth on the asset side of the business”
AHFCL’s genesis lies in meeting the demand of undeserved lower- and middle-income customers (LMI) for finance towards purchase of their own home. AHFCL’s entire business philosophy centers around enabling credit access to deserving and end-use driven LMI customers. Accordingly, the products (exclusive retail home loans with maximum loan size of Rs. 25 lakhs. No LAP or Builder Loans offered) and policies (prudent underwriting norms developed through a blend of quantitative and qualitative appraisal techniques that help in accurately gauging a customer’s ability and willingness to repay) have been defined keeping the customer in mind.
AHFCL’s strong operations are ably complemented by a robust technology platform that enables end to end processing of home loan applications and adequately captures the business risk related to the customer and the underlying asset. In fact, the first loan ever written in the Company’s history has been through the core lending suite.
Today, AHFCL is inching closer towards Rs2,000 crs of loan book, fulfilling the aspirations of more than 20,000 LMI families. Our average loan size remains at Rs10 lakhs, which is a reflection of the alignment of the entire team towards enabling housing finance for this customer segment. The AHFCL team continues to adhere to the basic principles of sound governance: honesty, integrity and transparency in day-to-day operations across the business functions.
AHFCL’s presence is spread across 50 locations in Maharashtra, Madhya Pradesh, Gujarat and Telangana. The 500+ staff is committed towards fulfilling the vision of providing long-term housing finance to LMI Indian families towards purchase of affordable housing units. AHFCL is a registered as a Primary Lending Institution (PLI) in Pradhan Mantri Awas Yojana (PMAY), and looks forward to participating meaningfully in Government of India’s mission of “Housing for All” by 2022. AHFCL has also been notified under SARFAESI Act, which enables speedy resolution of troubled assets.
AHFCL’s MALA (Mahila Awas Loan from Aspire) programcontinues to grow in strength with launches in Mumbai, Pune, Indore, Surat, Nashik, Nagpur and Akola. The company received the Finnoviti Award by Banking Frontiers in knowledge partnership with Deloitte in recognition of the MALA program. AHFCL is set for expansion in the existing as well as newer locations in the next financial year and looks forward to cumulatively serve more than 50,000 customers by the end of FY’17-18.
About Aspire Home Finance Corporation Limited (AHFCL)
Aspire Home Finance Corporation Limited (AHFCL) is a professionally managed housing finance company which works on the business philosophy of providing long term housing finance to target lower and middle income customers towards purchase of affordable housing units. The Company started its business operations from June 2014. In the first year of business operations, AHFCL has turned profitable registering a Profit after Tax of Rs.2.17 crs for the year ended March 31, 2015. For the first nine months of the current financial year (Apr-Dec 15), AHFCL has registered PAT of Rs.22.30 crs.
As of Feb 29, 2016, AHFCL loan book has crossed Rs.1,755 crs and has provided long term housing finance to 17,600 Indian families with an average loan ticket size of Rs.10.00 lakhs. AHFCL is a subsidiary of Motilal Oswal Securities Limited (MOSL) which is a part of Motilal Oswal Financial Services Limited (MOFSL), a diversified financial company focused on wealth creation through knowledge. Mr. Motilal Oswal is the Chairman of AHFCL Board.
AHFCL is managed by a team of professionals having strong experience in Indian housing finance market and headed by Mr. Anil Sachidanand, a veteran of over 25 years in Indian home finance industry. The Company has its presence in Maharashtra, Madhya Pradesh, Gujarat and Telangana. The Company has received "The Most Admired and Valuable Home Finance Company, 2015, in the recently held Indian Leadership Conclave award function and also been awarded “The Financial Services Institution of the Year” by ASSOCHAM.
About Motilal Oswal Financial Services Limited
Motilal Oswal Financial Services Ltd. (NSE: MOTILALOFS, BSE: 532892, BLOOMBERG: MOFS IN) is a well-diversified, financial services company focused on wealth creation for all its customers, such as institutional, corporate, HNI and retail. Its services and product offerings include wealth management, retail broking and distribution, institutional broking, asset management, investment banking, private equity, commodity broking and principal strategies. The company distributes these products through 2,036 business locations spread across 637 cities and the online channel to over 873,176 registered customers. MOFSL has strong research capabilities, which enables them to identify market trends and stocks with high growth potential, facilitating clients to take well- informed and timely decisions. Motilal Oswal Securities (MOSL) won the ‘Best Performing National Financial Advisor Equity Broker' award at the CNBC TV18 Financial Advisor Awards 2014 for the 4th year in a row. MOSL won the ‘Best Research as Research Showcase Partner’ at Research Bytes IC Awards 2014. Motilal Oswal Private Equity Private Equity won the ‘Best Growth Capital Investor-2012’ award at the Awards for PE Excellence 2013. Motilal Oswal Private Wealth Management won at the UTI-MF CNBC Financial Advisor Award in HNI Wealth Management category for 2015. Aspire Housing Finance won the “Most Admired and Valuable Housing Finance Company 2015” at the 6th India Leadership Conclave 2015. MOSL won the Best Broking House - Institutional Segment and Cash Segment at the Dun & Bradstreet Equity Broking Awards 2015.