Banking institutions and housing finance companies may, together, disburse off home loans worth Rs. 1,70, 000 crore this fiscal. This amount is an increase from Rs. 1, 30, 000 crore that they sanctioned last fiscal in the same segment.
Making the announcement, the Chairman and Managing Director of National Housing Bank, Mr. R.V.Verma further added that the demand for home loans is at a good level in tier II and tier III regions because of reasonable pricing of houses in these regions. Also, as a large chunk of property buyers are end users, the delinquency rate is also low.
Reportedly, State Bank of India, the country's largest public sector bank, has disbursed off home loans amounting to Rs. 20, 000 crore within the first nine months of this financial year. In the year before, SBI had sanctioned loans worth Rs. 28,000 crore in the home loan segment.
On the matter, the Deputy Managing Director of SBI, Mr. R.K.Saraf said, "Home loan growth has been quite robust since August. Our growth this year will be better than last year." The average loan amount provide by the bank under home loans segment is about Rs. 12 lakh.
Private sector lender, HDFC Bank has recorded a hike of 31 percent in the loan growth under this segment. The bank's average loan size is about Rs.21.5 lakh.