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Banks and housing finance companies are expected to collectively disburse home loans aggregating Rs 1,70,000 crore in the current fiscal, up from Rs 1,30,000 crore in the previous fiscal, said R.V. Verma, Chairman & Managing Director, National Housing Bank.
There is good demand for home loans in the tier-II and tier-III centres as house prices are moderate. A majority of the buyers are end-users and therefore delinquencies are relatively lower, Verma said.
India’s largest lender, State Bank of India, has already sanctioned Rs 20,000 crore of home loans in the first nine months of the current fiscal. In the year 2011-12, SBI disbursed Rs 28,000 crore to about two lakh units.
“Home loan growth has been quite robust since August. Our growth this year will be better than last year,” R.K. Saraf, Deputy Managing Director, State Bank of India said. The average loan size of SBI is about Rs 12 lakh.
Housing Finance Development Corporation (HDFC), the country’s largest housing finance company, reported a 31 per cent rise in disbursements in the first six months of the current year, said Keki Mistry, Vice-Chairman and CEO.
The average loan size of HDFC is about Rs 21.5 lakh.
There is good demand for home loans in the tier-II and tier-III centres as house prices are moderate. A majority of the buyers are end-users and therefore delinquencies are relatively lower, Verma said.
India’s largest lender, State Bank of India, has already sanctioned Rs 20,000 crore of home loans in the first nine months of the current fiscal. In the year 2011-12, SBI disbursed Rs 28,000 crore to about two lakh units.
“Home loan growth has been quite robust since August. Our growth this year will be better than last year,” R.K. Saraf, Deputy Managing Director, State Bank of India said. The average loan size of SBI is about Rs 12 lakh.
Housing Finance Development Corporation (HDFC), the country’s largest housing finance company, reported a 31 per cent rise in disbursements in the first six months of the current year, said Keki Mistry, Vice-Chairman and CEO.
The average loan size of HDFC is about Rs 21.5 lakh.
Property prices
There is a need to index priority sector lending in housing to appreciating property prices, according to a research paper authored by Professor Tarun Ramadorai, University of Oxford.
“Property prices in cities like Mumbai have shot up significantly. So, is there a need to increase the priority sector classification for housing loan beyond the present Rs 5 lakh? This needs to be examined,” Ramadorai said in his presentation at a seminar jointly organised by the Centre for Advanced Financial Research and Learning and NHB.
The research also showed that reclassification of non-performing loans from 180 days to 90 days have led to better recovery of home loans as lenders are actively managing their loan portfolios.
It also shows that the recovery law (Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002) has helped in the loan recovery process.
satyanarayan.iyer@thehindu.co.in
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