The total portfolio as outstanding grew by more than 10 per cent in the financial year ended March. The share of housing loans in bank credit has increased from 13.1 per cent in March 2020 to 14.4 per cent in June 2022. The contribution of housing to personal/retail loans is around 50 per cent.
The metropolitan areas of Bangalore, Chennai, Delhi (NCR), Hyderabad, Kolkata, Mumbai, Ahmedabad and Pune are classified as Tier 1. State capitals and developed regions are classified as Tier 2.
The rest of the districts are classified as Tier 3 and Tier 4 on the basis of their urban population. If the urban population of a rural district is between 26-50 percent, it is classified as Tier 3 and the rest as Tier 4.
The demand for home loans in rural areas is increasing mainly because of the SVAMITVA scheme of the government. The scheme entitles people in remote areas to document their residential properties, which can then help them use their properties for economic purposes.
Haryana and Uttar Pradesh, where the scheme has already covered many villages, are the more districts where home loan disbursement is growing at a fast pace,
Research said. It added that government schemes like AMRUT, PMAY(U) and Smart Cities Mission have also helped in creating a holistic ecosystem.
However, in this financial year starting April, home loan borrowers have started paying higher interest on their loans as the central bank has so far increased the repo rate by 140 basis points, allowing lenders to borrow. cost has increased. The Reserve Bank of India-led rate-setting panel is expected to hike rates further this year.
Nonetheless, India’s home loan market, which is currently valued at Rs 24 trillion, is projected to double in five years.
(with inputs from ANI)