Banks’ market share in individual housing loans has increased from 62% in 2017-18 to 67% in 2019-20, while housing finance companies’ (HFCs’) has decreased from 38% to 33%.
In 2018-19, banks and HFCs held 64% and 36% of the market share in individual housing loans (IHLs), respectively. The overall growth in IHLs of banks and HFCs combined was 10% in 2019-20, compared to 16% in 2018-19.
Following the IL&FS crisis in September 2018, India’s real estate and housing finance sectors began to slow in growth. However, with proactive measures and other initiatives from the Government, RBI, and NHB, the sector began to gain traction.
Combined, HFCs and banks had outstanding IHLs of between 20 lakh crore and 18 lakh crore in March 2019-20.
Outstanding IHLs for banks and HFCs increased by 8.5% and 3%, respectively, year on year.
In this slab, scheduled commercial banks (SCBs) and housing finance companies (HFCs) financed 124 lakh (119 lakh) housing units by March 31, 2020 (vs April 30, 2019).
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On March 31, 2019, 55% of the total IHL (53%) went to homes valued at more than Rs 25 lakh.
Affordable housing continues to grow as a result of strong demand and various support measures.