Homeloan borrowers
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NHB – The National Housing Bank, regulating authority of all housing finance companies in the country says that there is an increase in home loan borrowers. The Affordable Housing scheme launched by Narendra Modi-led NDA Government in the year 2015 revived the dream of owning a home by lakhs of Indian citizens.

According to the recent data of NHB, the independent housing loan market in the financial year 2017-18, disbursed 78% home loans for purchasing housing units that cost below Rs 25 lakh. NHB collects data from Public Sector Banks [PSBs] and Housing Finance Companies [HFCs] as these two firms are responsible for accounting 95 percent of the housing loan market. As per the recent data collection, the housing sector recorded a major increase in the purchase of residential units which rose to 21% in the year 2017-18 from 14% in the previous financial year. This 7 percent increase is equal to rupees 13.1 Lakh Crores which mean positive signs for the housing sector.

The real estate developers are also acknowledging the fact that the introduction of Affordable housing has made the sector bloom and the metro cities like Mumbai, Delhi, Bengaluru, and Chennai, have segregated apartments under Rs 50 lakh as affordable. Also, this boom left a positive impact on various sectors including sales of steel and cement, and creation of jobs, for both semi-skilled and unskilled workers.

The Central Government under PMAY Scheme targets to offer Housing for All by the year 2022. This scheme is implemented in two parts including PMAY [U] Urban and PMAY [R] Rural. Under PMAY Urban the applicants are segregated in different sections in which the Government will pay an interest subsidy on housing loans to people falling under the Economically Weaker Section/Low Income Group who earn annual income upto Rs 6 lakhs and to the Middle Income Group where the annual income ranges between Rs 6 lakh and Rs 12 lakh and between Rs 12 lakh and Rs 18 lakh.

The NPAs including Gross Non-Performing Assets [NPAs] for individual housing loans also witnessed a dip in 2017-18. In comparison to the NPS of 1.09% in 2016-17, this percentage on the outstanding home loan of Rs 13.1 lakh crore stands at 1.05% in 2017-18.