Fullerton India Home to look at securitisation of loan accounts

Chennai, Feb 4 (IANS) Home mortgage lender Fullerton India Home Finance Company Ltd will also look at securitisation of its loan book apart from bank loans, a top company official said on Thursday.

According to the official, the home loan company’s average loan size would be between Rs.5-7 lakh in the case of home loans and Rs.10-15 lakh in the case of commercial/non-home loans.

“Once our loan book size becomes sizeable, say around Rs.500 crore, we will look at securitisation. We will raise funds from the banks for business,” Rakesh Makkar, managing director of the company told reporters here.

Simply put, securitisation is the sale of loan accounts to another player for a sum. The loan accounts thus transferred will not figure in the books of the seller.

The Rs.150-crore equity based company is a fully-owned subsidiary of Fullerton India Credit Company Ltd a non-banking finance company (NBFC).

However, he declined to share short term business targets while saying the company’s loan size is expected to be in the region of Rs.5,000 crore in four-five years time frame.

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