Rising home loan portfolio bodes well for residential real estate

Notwithstanding, the severe jolt given by Corona pandemic to real estate including residential segment, the continuous growth in home loan segment holds hope for the revival and growth of real estate.


According to the industry statistics, the aggregate home loan portfolio of banks grew 9.1% in the year till March 26. The total home loan portfolio stood at Rs 14.59 lakh crore. Out of this the leading public sector bank- State Bank of India has a 35% share. The private sector  Axis Bank has shown a record 73% yoy growth as of March 31, 2021. Though the overall  growth in home loan disbursal  was little lower than the last year, yet considering the pandemic setback, it is quite credible. So much so that banks are now looking at an increased opportunity to leverage secured loans. Especially as NBFCs after suffering a setback, have been underperforming. To seize this opportunity, SBI has set a target to double its current home loan portfolio of 5 lakh crore in the next 5 years.


Says Mr. Pradeep Aggarwal, Founder & Chairman, Signature Global and Chairman, Assocham National Council on Real Estate, Housing & Urban Development, ” Both supply side and demand side policy boost by the government has helped to keep up  the home loan  momentum . In FY 22 budget, the home loan  interest subsidy under PMAY was extended for a year till March 22. Along with this , the income tax concession of 1.5 lakh on home loan interest to home buyers was also extended for a year. The income tax waiver to developers of affordable housing till March 2022 will keep the supply going. The government’s progressive measures will continue to boost demand for home loans, in turn ensuring growth of housing”.

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