|
Home loan portfolios in tier 3 and tier 4 districts are growing at a much faster rate than tier 1 and tier 2 districts post-pandemic, a study conducted by SBI Research showed.
Total portfolio in terms of outstanding grew by more than 10 per cent in the financial year that ended in March. The share of housing loans in bank credit has increased to 14.4 per cent in June 2022 from 13.1 per cent in March 2020. Housing contributes around 50 per cent of the personal/retail loans. Metropolitan regions of Bangalore, Chennai, Delhi(NCR), Hyderabad, Kolkata, Mumbai, Ahmedabad, and Pune are considered Tier 1, and state capitals and evolving areas are categorized as Tier 2. The rest of the districts are categorized as Tier 3 and Tier 4 based on their urban population. If the urban population of a rural district is between 26-50 per cent, it is classified as Tier 3 and the rest as Tier 4. The trend of rising home loan demand in rural districts can be attributed to the SVAMITVA scheme, which provides rural people with the right to document their residential properties which can then help them to use their property for economic purposes. Haryana and Uttar Pradesh, where this scheme has already covered many villages, have more districts where home loan disbursal is increasing at a faster pace, SBI Research said. Also, central government schemes like AMRUT, PMAY(U) and Smart Cities Mission have been pivotal in creating a holistic ecosystem that has seen housing demand accelerating in non-metro areas, it said. The research further said India's home loan market, currently valued at Rs 24 trillion is expected to double in the next 5 years, mirroring the overall trend in the country's aspirations to become a USD $5 trillion economy. While terming the RERA act of 2016 as a giant step by the central government to ensure transparency in the real estate sector, it said is of utmost importance to mandatorily register all projects on RERA to create a database for understanding the evolving patterns of developmental activities in a select locality/city and modelling buyers' behavioural pattern that indicates the economic well being of society at large. (ANI)
|
