Can Fin Homes targets 20% disbursement growth in FY26 on rate relief

The housing finance company faced challenges in two of its major markets — Karnataka and Telangana — in FY25. Business in Karnataka was affected by delays in the registration of property sale transactions. 

The issue with e-Khata, a digitised version of certificates providing property owners with a secure online platform, has since been resolved. 

 Referring to the easing interest rate cycle, Iyer said liquidity is ample and the Reserve Bank of India has already cut the policy repo rate by 50 basis points.

Another 50-basis-point cut is anticipated. Once the company sees a reduction in its cost of funds, it expects to pass on 35–50 basis points of benefit to customers, subject to market conditions.

 On the liabilities side, the company sources 55 per cent of its funds from the banking sector and another seven per cent through commercial papers.