Housing finance company (HFC), Dewan Housing Finance Ltd (DHFL) has forecasted a dip in loan growth in this fiscal as compared to the huge credit offtake last fiscal.

According to a top official of the company, the loan growth this year is expected at 30-35% as against 68% a year back.

The HFC has aimed to render maximum focus on Tier II and III cities where demand for home loans is still seen to be pretty high, said Chairman and Managing Director Kapil Wadhawan.

"The biggest challenge, I'd say, is rising interest rates and how this is going to impact the loan portfolios. A marginal impact cannot be ruled out," he said.