The Hindu Business Line : PNB Housing Finance targets cluster financing

Pune March 8 PNB Housing Finance Ltd, a wholly owned subsidiary of the Punjab National Bank, will be promoting cluster financing to facilitate housing loans while upping the disbursals from Rs 600 crore in the current year to Rs 700 crore in the forthcoming fiscal.

To implement this strategy, the company will focus on tying up with leading builders across the country, and is already in talks with some builders in Pune, including Pride Purple, Kumar Developers and Lunkad Developers, Mr V.K. Khanna, Managing Director, has said.

The housing finance company has also tied up with Tata AIG to insure the life of the borrower, and will also offer the single premium amount as loan. In addition, it has tied up with IFFCO Tokio to insure the property for the amount it will require to re-construct the house in case of damage, plus offer accident (disability) insurance cover to the borrower.

Asserting that the single window clearance for legal and project appraisals for large projects would cut the loan sanction time to individuals substantially, Mr Khanna said that the segment they will be addressing is low ticket housing. Towards this end, the company has already tied up with Cosmos builders in Mumbai for a slum clearance project near Siddhi Vinayak temple.