Cheaper interest rates, flurry of offers by banks and stamp duty cuts by states have contributed to a demand surge in the home loans market. Banks are finding these assets as attractive bets more than ever as against risky corporate loans in a faltering economy.
Of late, there has been a spectacular jump in demand for home loans, bankers and analysts said. Most banks have been increasing the share of mortgage loans as a percentage of retail book and overall loan book, they added.
Most banks have at least half of their retail book in home loans now. “Everybody wants to take a home loan and buy a home now,” said Sidhharth Purohit, analyst at SMC Global Securities.
According to RBI data, home loans have grown nearly 9 per cent on a year-on-year basis compared with overall loan growth of 6 per cent till November. Since then, the growth would have picked up even more, analysts say. Till November, banks had housing loan outstanding of Rs 13.8 lakh crore as against Rs 12.7 lakh crore in the year-ago period.