Motilal Oswal Home Finance Limited (MOHFL) was formerly known as Aspire Home Finance Corporation Limited. As per the credit rating report, the company offers housing loans to customers in the low and middle-income groups. It is a part of the Motilal Oswal Group. MOHFL has a network of 104 branches in Andhra Pradesh, Chhattisgarh, Gujarat, Haryana, Delhi, Karnataka, Madhya Pradesh, Maharashtra, Rajasthan, Tamil Nadu, and Telangana.

Underwriting:

In the business of lending, underwriting is the single most parameter which one should look in order to make an investment in the company. Underwriting is a process of distribution of loans. If the company has a robust process for underwriting, then chances of NPAs get reduced considerably. Now, let us see how MOFH does underwriting?

a.     The loan approval process at MOHFL is in 4 layers of an approval process based on the ticket size of the loan.

b.     Approvals of lending proposals are carried out by various authorities from Cluster Credit Head to National Credit Head.  Approvals beyond certain limits are referred to as the Chief Operation Officer. An additional layer of in house legal
and technical makes the underwriting process more robust.

c.     There is a Dedicated Risk Containment Unit (RCU) in the Company to minimize fraud related to income documents, profiles, and collateral.

Borrowing:

Lending is a business where we need money to give money. MOHF first arranges money and then distributes it to the people in the economy to buy a new house or reconstruct. Now, how MOHF arranges fund?

a.     From banks by a way of term loan.

b.     NCD by issuing commercial paper

MOHFL total borrowings as of March 31, 2020, of Rs 2,954 crores. And, the cost of borrowing in FY20 at 10.16%.

A journey of Motilal Oswal Home Finance

2014:
(i) Commencement of Business Operation on 22.05.2014.
(ii) The first disbursement booked in Akola Branch in June 2014.
(iii) The loan book crossed 50 Cr.

2015:
(i) Presence across 14 locations.
(ii) Total staff: 160 employees.
(iii) Loan book at 357 Cr with 3565 live accounts.
(iv) Year-end PAT at 18 Cr CRISIL upgrades rating for long term borrowings from “A/Stable” to “A+/Stable“ Loan book crosses 550 Cr with 5,500 Cr live loan accounts Present at 23 locations.

2016:
(i) Present in 51 Locations with employees count of 500.
(ii) PAT for the years at 40 Cr.
(iii) Received the first 50 Brand 2016 award by WCRC.
(iv) Presence extended to 62 locations.

2017:
(i) Awarded second prize for best performing Primary Lending Institution under CLSS for EWS/LIG by the Ministry of Housing and Urban Poverty Alleviation.
(ii) Expanded to 6 new states with a presence in 121 locations with a staff count of 1049.
(iii) loan Book of 4165 Cr with 46,142 live accounts.

2018:
(i) 4682 Cr of the loan book.
(ii) Capital Infusion by MOSFL of Rs. 150 Cr.
(iii) Strengthening of a core team.
(iv) Strengthening Credit & Risk

2019-20:

(i) CRISIL has upgraded MOHFL’s rating to AA- (stable outlook) from earlier A+ (stable) based on several positive changes undertaken.