It has been reported that since the lending in infrastructure and small business is turning bad, banks are finding home loans more secure. In beginning of the financial year the home loans have shown the maximum growth of about 13.5%.
For the people planning for home loans it’s the good time since the banks are providing various offers and schemes on the home loans. According to the RBI data from April to December the outstanding home loans increased by 11%. On this account chairman of State Bank of India stated that the bad loans in the home loans sector are quite low, therefore home loans are safer for the banks.
In home loans cost of credit is low for the lenders as the banks do not have to large values for the defaulters. The banks provide loan up to 75 lakhs with an interest of 10.1% for males and 10.15% for females.No significant growth has been noticed in auto loans, or credit cards loans. Banks reported that home loans are safe because in home loans the loan-to-value ratio is low.