Affordable housing loans from HDFC

By Devin Jayasundera
HDFC, Sri Lanka’s only bank which specialises in Housing finance industry launched its newest product HDFC Housing Fund that provides affordable and accessible financial services for housing purposes at a media briefing yesterday.
HDFC Bank officials believe that these kinds of innovative schemes will strengthen the housing sector in Sri Lanka.

The primary focus of HDFC bank is to provide a favourable service to the low and middle income segments that constitutes 60% to 70% of the population often face hardships when it comes to acquiring loans and other financial services stated HDFC AGM Business Development and Marketing D. V Pathirane who said, “Around 30% of theses segments face difficulties in accessing housing finance services through formal banking. The new loan scheme will enable them to get access for housing finance without proving any collaterals and credit documents.”
He also enlightened the audience on the challenges that Sri Lanka will face in the next decade due to the ageing population. 
“In the next 15- 20 years the countries populations ageing rate would equal to Europe and Japan. But in contrary to those countries social security systems Sri Lanka’s social security systems and retirement plans have not developed to suit the needs of the retirees. Sri Lankan regiment plans are limited to the pension of the Public sector and the EPF and ETF emoluments of the private sector. But there is also a 35% self employed population and how are they going to be look after themselves after they retire?” he questioned.
In this scenario Pathirane believes that the HDFC housing fund which also acts as a unique retirement fund where customers have the opportunity to obtain the highest customer return in creating wealth.
At HDFC investments are geared to pay investment returns that are geared to equal 75% of the lowest interest charged for Housing loans and HDFC ensures that the interest rate is always the highest and above the average market rate.
Another novel feature of this financial product is the ‘HDFC Group Housing Fund’ scheme where customers can form their own group funds.
Pathirane noted that villages, associations, professional bodies and even private companies can set up corporate funds for a higher benefit for their employees.
The high flexibility the HDFC housing fund offers will provide alleviate doing business with the bank for lower and middle income families.
The minimum initial investment can begin with Rs. 500 and the subsequent investments can be any amount and made at any time.
HDFC bank Chairman Siromi N. Wickramasinghe proclaimed that HDFC is built around providing more accessible and convenient housing loans for the public.
She pointed that  many people put their families first when they envision their future but it is also important to think of their own future as the demographics of the country is changing and more challenging.
HDFC Bank constitutes 51% ownership with the National Housing Development Authority and the 49% vested with the public. The bank comes under the direct purview of the Ministry of finance and planning.  The bank hopes to reach Rs. 30 Billion in Asset value by 2013.