Individual Housing Loans in India Reach ₹33.5 Lakh Crore by Q2 FY24, Reports NHB
National Housing Bank Releases Insights on Housing Finance Sector
In a recent report, the National Housing Bank (NHB) announced that outstanding individual housing loans in India amounted to ₹33.53 lakh crore as of September 2024, marking a robust growth of 14 percent year-on-year. This report is part of NHB’s ongoing efforts to provide comprehensive insights into housing trends and finance.
Disbursements on the Rise
The report highlighted that individual housing loan disbursements during the half-year period ending in September 2024 reached ₹4.1 lakh crore. This figure demonstrates a significant portion of the overall loan activity within the sector, contributing to the cumulative disbursements of ₹9.07 lakh crore for the fiscal year ending March 2024. Segment Breakdown of Housing Loans
According to the NHB, the Micro Income Group (MIG) segment has contributed the most to outstanding individual housing loans, accounting for 44 percent of the total. The report provided further details on the distribution of loans among various income segments: Economically Weaker Sections (EWS) and Low-Income Groups (LIG) together constituted 39 percent, while High-Income Groups (HIG) represented 17 percent of the outstanding loans.
Government Initiatives and Program Influence
The NHB report discusses various flagship initiatives by the Government of India aimed at enhancing the housing sector. Programs such as the Pradhan Mantri Awas Yojana-Gramin (PMAY-G) and Pradhan Mantri Awas Yojana-Urban (PMAY-U) have been pivotal in this growth, alongside the Urban Infrastructure Development Fund (UIDF) and Affordable Rental Housing Complexes (ARHC) scheme.
A key focus of the report is the impact of PMAY 2.0 and associated budgetary announcements on the housing sector’s outlook. The government’s commitment to urbanization, transit-oriented development, and digitization further supports positive growth trends.
Housing Finance Companies: A Vital Component
Housing Finance Companies (HFCs) play a crucial role in meeting the diverse requirements of homebuyers. Their flexible eligibility criteria, efficient customer service, and swift documentation processes have enabled them to thrive in the Indian financial landscape.
However, NHB also pointed out significant regional disparities in the flow of housing credit. Predominantly, southern, western, and northern states receive most disbursements, while eastern and northeastern regions experience lower credit penetration—an issue HFCs and regulators strive to address.
Addressing Regional Disparities
In its report, NHB acknowledged the ongoing efforts by the government and regulatory bodies to enhance mortgage penetration in underserved areas. Initiatives such as the co-lending model, which merges the liquidity of banks with the outreach of HFCs, aim to extend housing credit to populations that have historically faced barriers to accessing financial resources.
As the housing market continues to evolve, the NHB’s report illustrates a landscape of potential growth and significant challenges, particularly concerning regional disparities. The collective initiatives by the government and financial institutions are anticipated to stimulate further progress in the housing sector across the country.
For more updates on the housing market and financial insights, readers can follow the latest developments in business news, budget updates, and personal finance tips on platforms like Moneycontrol or through the Moneycontrol App.
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