A renowned home loan lending company HDCF has reported that an increase by 23% is seen in home loan in first quarter of this year. Another housing finance company Sundaram BNP Paribas Home Finance has seen the growth by 15% i.e. Rs 4,413 crore as against Rs 3,847 crore during the same period last year..
The finance ministry has also announced special discounts for the home loans and increase in allocation under rural housing. The major part of the increase in home loans is seen from under Rs 15 lakhs. However in some cities the prices have increased by 15% but still the housing is affordable for the industrial workforce.
To support the home loan buyers, govt. is also introducing a new Credit guarantee fund scheme for the loan up to Rs 5 lakh especially for the low income groups. The growth has primarily come from Karnataka and other non-south branches.