While some of the bigger firms have enough liquidity to meet the disbursement needs, the smaller ones, particularly the ones which had started operations about two-three years ago, are facing liquidity issues. “Impact is certainly felt in the space. We have slowed down our disbursements, as some of the banks have put their limits on hold. We have liquidity for couple of months. As of now, we are not chasing customers, as it is better to go safe,” said C V Rao, managing director and CEO, Nivara Home Finance.
According to data from National Housing Bank, there are more than 90 housing finance companies (HFCs) in India . In the past two to three years, close to 15-20 firms are focusing on lending to the informal sector.