Over the past year, outstanding home loans in India have surged by ₹3.4 lakh crore, according to recent data from the Reserve Bank of India (RBI). This increase underscores a significant uptick in the housing sector’s momentum, reflecting both rising property demand and enhanced borrowing capacity among consumers.
Source:- BBC news
Several factors contribute to this growth. Low-interest rates have made home loans more attractive, encouraging many to invest in property despite economic uncertainties. The government’s focus on affordable housing and various incentives under the Pradhan Mantri Awas Yojana (PMAY) have also played a pivotal role. Additionally, the pandemic-induced shift towards home ownership and the demand for larger living spaces have further fueled this trend.
Source:- india today
Banks and housing finance companies have been active in expanding their home loan portfolios, competing to offer competitive rates and flexible repayment options. The overall growth in home loans is seen as a positive indicator of economic resilience, showcasing the housing market’s recovery post-COVID-19 disruptions.
However, this rise also brings challenges, including concerns about potential over-leveraging by consumers and the need for robust risk management practices among lenders to ensure sustainable growth in the sector.
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