Affordable Housing Loan Lenders Rose by 23% in 5 yrs

Homebuyers must look into affordable housing segments to purchase their dream homes as the delinquency rate has been below 1 per cent on affordable housing loans in the last five years, according to the study by credit information company Cibil.

Cibil says in their report that there is a significant growth of 23 per cent in home loan (under Rs 10 lakh ticket size) growth rate of over the past five years whereas the non-profitable asset (NPA) rate has been under 1 per cent. In the year of 2016, affordable housing loan book reached to the sum of Rs 30,400 crore shared by around 7.5 lakh borrowers. The trend clearly shows the increased potential of lenders.

The study further reports that the average ticket size in affordable housing loan segment is reduced to 4.1 lakh from 4.8 lakh which determines the lender’s success on the financial inclusion drive. Keeping this fact in mind, more small banks and micro-lenders are expected to jump to the affordable housing lending in the coming years.

Maharashtra along with the states including Madhya Pradesh, Gujarat, Tamil Nadu and Andhra have recorded 60 per cent of total affordable housing loan accounts opened in India.

“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,” says Harshala Chandorkar, Chief Operating Officer, Cibil.

Source: ET Realty

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