HDFC approves retail home loans worth over Rs 2 trillion in FY22

Housing Development Finance Corporation (HDFC) has approved retail home loans totalling more than Rs 2 trillion in the current fiscal year — the highest ever in a financial year. The mortgage lender said its thrust on digital initiatives and an inherent demand for housing have helped it achieve the target.

The demand for loans has been from across the country, the lender said. “In over four and half decades, I have not seen a better time for the housing sector than now due to lower interest rates, stable property prices, government’s thrust on affordable housing, improved affordability, favourable demographics, increasing urbanisation and rising aspirations,” Renu Sud Karnad, MD, HDFC, was quoted saying in a release.

She said the Credit Linked Subsidy Scheme (CLSS) under the Pradhan Mantri Awas Yojana (PMAY) has propelled the move towards the ‘Housing for All’ goal. As of December 31, cumulative loans disbursed under CLSS stood at Rs 45,914 crore and the cumulative subsidy amount stood at Rs 6,264 crore.

The lender has been focussing on digital platform for loans. For retail deposits, it has initiated ‘HDFC Customer Connect’ for all customer requests and launched virtual offices for customer services. With this, over 89% of retail loans are now sourced online up from less than 20% before the Covid-19 pandemic.

Karnad also said the demand for housing continues to be from first-time homeowners as well as from those moving up the property ladder, generally to larger homes. Across metros and non-metros, the demand for housing is seen healthy and is prevalent in affordable as well as high-end markets. The sweet spot for housing is still in the price range of Rs 50 lakh to Rs 1 crore.

In the last three quarters of the current financial year, 30% of home loans approved in volume terms and 13% in value terms have been to customers from the Economically Weaker Section (EWS) and the Low Income Group (LIG). Moreover, the mortgage lender is also increasing its footprint in funding affordable, smart and green housing. For this, it has signed an MoU with the Indian Green Building Council to promote and encourage developers to opt for green buildings in India.

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