Low ticket home loans to boost affordable housing

In line with government’s progressive policies, providing impetus to low- cost homes for achieving the aims of its ‘Housing for All’ mission, housing finance companies (HFCs) have tailored their business, targeting low- ticket home loans.

 The increasing focus of  HFCs on low- ticket home loans (5- 25 lakh) along with tapping non- salaried housing loan seekers, is paying rich dividends. Reliance Housing Finance has registered 20 percent growth in Q4, 2017. While DHFL has seen its net going up 26 percent in the last quarter of 2017. , Indiabulls Housing Finance’s loan book has grown 34.3 percent during this period. As a result of this encouraging trend, HFCs are now increasing their focus on low- ticket home loans.

Piramal Housing is looking at more than doubling its 1400 crore housing finance assets under management within a year, while ICICI Housing Finance has announced to expand its loan biz for affordable homes.

 Says Pradeep Aggarwal, Chairman, Signature Global, ”  The CLSS under PMAY, has encouraged HFCs to go in for low- ticket loans. Also, they have realized that their future business  lies in affordable housing which has lowest NPA. They should reach out to more home loan seekers of affordable housing in tier 2-3 cities, besides tapping  non- salary segment of loan seekers “.

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