Home loans see 40% growth in December 2021 quarter
Thanks to ease of access to home loans, the number of home loans (value) increased by 40% in the December quarter of FY2019 to FY22, according to a credit bureau research report CRIF High Mark. The report analyzed the main consumer loan products – car loans, two-wheeler loans, personal loans, consumer durable loans and home loans – during the quarter ended December 2021.
According to the report, there was an increase in origination share (value and volume) of private banks in the quarter from FY19 to FY22. However, the share of public sector banks and housing finance companies (HFCs) has declined over the same period. In the December quarter, public sector banks dominated with 43.8% of loans by value. Private banks had a share of 36.6%; non-bank financial corporations (NBFCs) had the lowest share at 19.6%. But by volume, NBFCs were in the lead with 68.1%; private banks had a share of 23.2 percent and public sector banks the least at 8.8 percent.
There was a 40% growth in originations (value) in the home loan category during the quarter, from Rs 1,38,544 crore in FY19 to Rs 1,93,227 crore in FY22 . Loan volume increased 21% from 6,70,000 accounts in FY19 to 8,10,000 accounts in FY22. As expected, loan values were low in the rest of the year. FY21 vs rest of FY20 due to Covid.
In terms of expected developments, the first two quarters of FY22 saw creations worth Rs 2,86,226 crore, compared to the higher of Rs 4,23,129 crore in the three quarters of FY20 (Q1, Q2 and Q4). If this trend continues, creations in the rest of FY22 could reach or exceed pre-pandemic levels in the rest of FY20.
In the home loans category, in FY22, Maharashtra recorded the most loans at Rs 43,151 crore, followed by Karnataka at Rs 19,550 crore in loans and Gujarat at Rs 15,476 crore. The second best performing category in the loan market was personal loans, with borrowers in Maharashtra registering Rs 17,785 crore and Uttar Pradesh at Rs 12,495 crore.