The financial condition of millions of people has again collapsed due to the second wave of Corona crisis.
Its impact has been seen on home loans. The number of home loan defaulters (EMIs) has increased once again.
According to a report by credit information bureau CRIF High Mark, home loans of Rs 75 lakh or more have seen the highest number of defaults.
This segment has the highest number of EMI defaults reaching 3.01 per cent (December, 2020). At the same time, the cases of default above 35 lakhs and 75 lakhs were 1.96 percent and up to 35 lakhs 2.56 percent.
At the same time, maximum default cases have been seen in loans of less than 10 lakhs. The percentage of error in this has reached 4.44 percent.
Higher risk of default among youth
According to the report, the risk of home loan default is higher among youth below 26 years of age.
Customers above 45 years of age have the lowest default risk, while those between 27-45 years have the second lowest risk.
The arrears for more than 90 days of loan repayment accounted for 2.49 per cent of the total loan book. In this too the number of small borrowers is high.
The share of outstanding dues in home loans below Rs 10 lakh stood at 4.44 per cent.
Highest demand for cheap homes
Affordable houses (up to Rs 35 lakh) account for 90 per cent of the total home loans in terms of numbers, while it stood at 60 per cent by value.
In the affordable housing category, loans up to Rs 15 lakh account for 70 per cent in terms of numbers and 38 per cent in terms of value.
The number of youth (below 36 years) taking home loans has grown by 27 per cent year-on-year till December 2020.
Highest share of public sector banks
The total share of public sector banks in the home loan business is close to 45 per cent. In this, the share of top five public sector banks is around 30 per cent.
At the same time, the top five private banks account for 15 per cent in the home loan business while NBFC companies account for 27 per cent.
According to the report, private sector banks gave most of the home loans of Rs 75 lakh while the share of public sector banks in this segment is less.
Home demand increased in small towns
Vipul Jain, Product Head, CRIF High Mark said that the demand for loans up to 35 lakhs has increased the most.
Tier II and III (smaller cities) have contributed to the increase in the demand for small ticket size loans. The growth in home loan demand in smaller cities has been higher than in metro cities.
Increased desire to buy your home
Rakesh Yadav, CMD, Antriksh India Group said that after the Corona crisis, the desire of people to buy their homes has increased rapidly.
Apart from the metro, this trend has increased rapidly in smaller cities. This is because Corona has made us aware of the importance of home.
Due to this the demand for affordable homes has increased the fastest. People are buying their houses in the ready to move and soon to be completed project.
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