Digital boost to mortgage bodes well for residential growth.

The record jump in the digital disbursement of loans including  home loans and personal loans , holds great promise for the growth of residential real estate.

According to a RBI report, the overall volume of loan disbursements through the digital mode grew more than 12-fold between 2017 and 2020 to Rs 1.42 lakh crore from 11671 crore. NBFCs and private sector banks with a share of 30 percent and 55 percent  respectively, are the dominant entities in the digital lending ecosystem. In fact NBFCs have made great strides in lending through digital mode. The share of NBFCs rose to 30.3 percent in 2020 for 6.3 percent in 2017, highlighting increasing adoption of technological innovation.In case of NBFCs, a higher proportion of lending (0.23 lakh crore via the digital mode vis-a-vis physical mode ) is happening through the digital mode.

Says Pradeep Aggarwal, Founder & Chairman, Signature Global and Chairman, Assocham National Council on Real Estate, Housing and Urban Development, ” The higher offtake of digital home loans from NBFCs, reflects the rising demand for buying homes, especially  in the post- covid time. There is an increasing demand for affordable and mid-priced homes and they will continue to drive the residential real estate market in the coming years.

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