The uptick in home loans during Covid-19 is a healthy sign for the revival of residential realty hit hard by the pandemic.
According to Trans Union Cibil data, home loan enquiry volumes in the last two months of the year, have surpassed last year’s levels. From 92% in January- February 2019, home loan enquiries have shot up to 112% in July- August 2020. This follows the encouraging pick up in home loans under PMAY. The country’s premier mortgage lender has approved 50000 subsidized home loans worth Rs 47000 crore, benefiting 2 lakh home loan borrowers.
Says Mr. Pradeep Aggarwal, Founder & Chairman, Signature Global Group and Chairman, Assocham National Council on Real Estate, Housing & Urban Development, ” These are very encouraging signs for housing, especially affordable housing which is a big driver of home sales. This has been made possible by substantial increase in affordability. The lowest ever home loan rates of below 7%, long stagnant/declining prices and zero GST on ready homes bodes well for realty revival.