On Tuesday, it announced its foray into the healthcare lending space, where it will take exposure of up to Rs 15 crore. Private sector lenders, however, will not seek funding from the Reserve Bank’s on-tap liquidity scheme for the sector, as its cost of funds is very low, said its chairman and head. business banking assetshandjob Sunil Daga, said.

In May this year, reserve Bank of India An on-tap liquidity window of Rs 50,000 crore was announced by banks for on-lending to the healthcare sector, where they can take exposure for up to three years and access funding at the repo rate.

Daga said the bank’s cost of funds is “very competitive” and, therefore, it will not be able to reach the RBI window. He said business is exciting even without a central bank’s special window.

Daga said that till now, Kotak Mahindra Bank was funding the healthcare sector, but now it has a focused offering, adding that the business will be part of its consumer segment.

Daga declined to specify the size of his current health care book, but said it was small. Now, the bank has formed a dedicated pan India team to complete this business.

It will lead to health related risks Loan For an individual, long-term project loan for doctors who build healthcare infrastructure, he said the single exposure could go up to Rs 15 crore.

Daga said the bank is targeting to start with 100 customers signing up in a month and will aim to take it to 500.

The loans will be both secured and unsecured, and will also include accelerated approval for exposures up to Rs 50 lakh, the bank said in a statement.

The loan tenure will be between 12 and 84 months, while the loan-to-value ratio can go up to 85 percent, according to its website.