A study by credit information company CIBIL, has revealed that loans meant for affordable housing (home loans of under Rs 10 lakhs ticket size), have shown a robust 23 per cent CAGR over the past five years, while the delinquency rate has been firmly under control at around 1 per cent.
In 2016, the affordable housing loan book stood at Rs 30,400 crores, extended to around 7.5 lakh borrowers. “The golden lining is that there have been low delinquency rates on affordable housing loans over the past five years. These trends indicate a very strong growth potential for lender,” the report said. The study said the average ticket size in the segment has been coming down from around Rs 4.8 lakhs in 2009-10 to nearly Rs 4.1 lakhs now, possibly suggesting the lenders’ success on the financial inclusion drive.
See also: Affordable housing to be growth driver for housing finance market
“Looking at the average ticket size, we expect to witness more and more small banks and micro-lenders getting into affordable housing lending in the coming years,” CIBIL chief operating officer, Harshala Chandorkar said. “The possible reason for the steady growth in the affordable housing loan segment, is the increase in lending towards the bottom of the pyramid. In consideration of the rise in home prices, this could be seen as a significant development indicator,” she added.
The study found that Maharashtra, Madhya Pradesh, Gujarat, Tamil Nadu and Andhra are the top five states, with the highest number of affordable home loans in the last five years, contributing around 60 per cent of the total such accounts opened. Maharashtra holds the top spot with the highest number of accounts (over 6.53 lakhs) followed by MP (5.60 lakhs), Gujarat (3.13 lakhs), TN (2.65 lakhs) and Andhra Pradesh, with 2.28 lakh such accounts.
Press Trust of India (PTI), headquartered in New Delhi, is India’s largest news agency. It was registered in 1947 and started operations in 1949. PTI has more than 400 journalists and 500 stringers, who generate more than 2,000 stories and 200 photographs every day. Subscribers to PTI’s feed include the mainstream media, research groups, specialised presses, companies, government organisations and NGOs.
Facebook: https://www.facebook.com/PressTrustofIndia
Twitter: https://twitter.com/PTI_News
Email: [email protected]
Related Posts
Housing Minister Venkaiah Naidu warns states against diluting real estate law.
Borrowers to get additional 90 days to repay home loans.
Budget 2016 to Budget 2017: Did last year’s sops help affordable housing?.
Dilutions threaten RERA’s effectiveness.
Real Estate Act comes into force, only 13 states notify rules.
Gujarat tops the list among 2.75 lakh home buyers availing of the subsidy scheme under PMAY (U).
