The housing sector in Andhra Pradesh is set to receive a significant boost as LIC Housing Finance Limited (LIC HFL) has announced a new loan disbursement target of ₹4,250 crore for the current financial year. The decision comes on the heels of a strong performance in FY 2024-25, during which the company extended nearly ₹3,700 crore in home loans across the state.
Strong Market Performance and Growing Demand
According to company executives, Andhra Pradesh remains one of the largest contributors to the South-Eastern Regional Office (SERO) portfolio. The region, which includes both Andhra Pradesh and Telangana, accounts for nearly 25% of the company’s national business. While Hyderabad continues to generate high-value housing loans, financial institutions are witnessing steady expansion in Andhra Pradesh due to infrastructure development and urban growth.
New Sub-Regional Setup in Vijayawada
To strengthen operational efficiency and decision-making, LIC HFL has created a dedicated sub-regional structure headquartered in Vijayawada. Officials stated that this restructuring will bring faster approvals, improved customer access, and better handling of applications from smaller cities and towns.
The move is expected to directly benefit districts such as Krishna, Guntur, Visakhapatnam, Chittoor, and Anantapur, where large-scale residential and commercial real estate activity is underway.
Focus on Middle-Class and Affordable Housing
With rising demand for affordable and mid-range homes, housing finance companies are prioritizing flexible loan options, digital processing, and shorter timelines. LIC HFL has reported strong uptake in Tier 2 and Tier 3 regions driven by salaried professionals, small business owners, and NRIs investing in property.
The company expects demand to grow further as urban expansion, industrial development, and state infrastructure projects continue across Andhra Pradesh.
Positive Sector Outlook
Industry analysts believe that economic recovery, job creation, and renewed construction activity will fuel the housing sector in the coming year. Financial institutions are optimistic about long-term prospects, especially with improved connectivity, smart city development, and government-backed housing initiatives.
With a higher loan target and a customized administrative setup, LIC Housing Finance is positioning Andhra Pradesh as a key growth market for FY 2025-26. The expansion is expected to support homebuyers, developers, and regional economic progress.