With the retail credit growth turning positive for the first time in FY 2021-22, majorly driven by housing(especially affordable and mid-priced), besides car and consumer loans, the festive months further set to give a boost to affordable housing.
According to the RBI data, bank lending rose Rs 7283 crore till September 24, against a contraction of 1 percent for Rs 99280 crore on a YTD basis in the same period last fiscal year, 2020-21. YTD growth in 2020 had turned positive only in the festive month of November . Year-on-year credit growth has also shown momentum at 67 percent in September, up from 5.1 percent last September. The outstanding bank credit stood at Rs 109.56 trillion. Despite the Covid pandemic, the loan book of affordable housing finance companies went up by 10 percent to Rs 60468 crore. In the September quarter , affordable and mid-priced housing , according to Anarock report, had a sizable share of 52 percent in the over all home sales across top 7 cities in India.
Says Mr. Pradeep Aggarwal, Founder & chairman, Signature Global and Chairman, Assocham National Council on Real Estate, Housing and Urban Development, “In the festive quarter of October- December, the housing credit is bound to improve further, driven by affordable and mid-priced segment. Especially so as banks have further come up with special festive period schemes to further cut interest rates.